SDX Energy 'Well Placed' to Drill South Disouq Well

SDX Energy Inc. is well placed to maximize the potential of its South Disouq asset in Egypt, says the company’s president and CEO Paul Welch.

“We have a solid financial position which is underpinned by high-margin production that enables us to generate positive free cash flow down to $15 oil,” he commented in a company statement.

“This, combined with an active, and potentially transformational work program, gives us a high degree of confidence about the future,” Welch added.

Along with the completion of workover programs at the North West Gemsa and Meseda assets in Egypt, SDX completed a 3D acquisition in South Disouq ahead of schedule and under budget. Seismic data processing is currently underway and the company hopes to pin down a location to drill by mid to late third quarter this year, with a spud anticipated late in the fourth quarter, Welch told Rigzone.

SDX reported net revenues of $4.6 million in the six months ended June 30. The company invested $6.5 million of its capital expenditure into the business and as at June 30, had cash on hand of $6.9 million and no debt.

The company’s available cash was lower than expected, according to FirstEnergy Capital, due to an increase in receivables where the oil and gas advisory firm had carried a small decrease. In spite of this, FirstEnergy still gave SDX an “outperform” ranking.  

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  BP Brings Quad 204 Project Online (May 22)
 -  UK Operators Must Take Time to Invest ... (May 19)
 -  Cairn Flows Oil From SNE-6 Well, 'Very... (May 18)
 -  Unite Urges Members to Vote Yes for St... (May 16)
 -  Brent Bravo Platform Decommissioned, W... (May 16)


Most Popular Articles

From the Career Center
Jobs that may interest you
Floorhand - Job Fair May 31st
Expertise: Floorhand / Roughneck
Location: New Iberia, LA
 
GOM Floorhand
Expertise: Floorhand / Roughneck
Location: New Iberia, LA
 
Fluids Analysis Specialist
Expertise: Chemist|Geochemist
Location: Houston
 
search for more jobs

Brent Crude Oil : $53.87/BBL 0.48%
Light Crude Oil : $50.73/BBL 0.79%
Natural Gas : $3.33/MMBtu 2.14%
Updated in last 24 hours