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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Sdx Energy | TSXV:SDX | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.37 | 0.33 | 0.37 | 0 | 01:00:00 |
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
LONDON, Nov. 26, 2018 /CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce its unaudited financial and operating results for the three and nine months ended September 30, 2018. All dollar values are expressed in United States dollars net to the Company unless otherwise stated.
Highlights – three and nine months ended September 30, 2018
Corporate and Financial
Three months ended September 30 | Nine months ended September 30 | |||
US$ millions except per unit amounts | 2018 | 2017 | 2018 | 2017 |
Net Revenues | 15.4 | 10.1 | 39.8 | 28.2 |
Netback(1) | 12.0 | 7.5 | 31.3 | 20.4 |
Net realized average oil/service fees - US$/barrel | 66.38 | 45.61 | 63.69 | 44.20 |
Net realized average Morocco gas price - US$/mcf | 11.05 | 9.53 | 10.52 | 9.43 |
Netback – US$/boe | 33.62 | 23.54 | 33.18 | 22.82 |
EBITDAX(1) (2) | 11.0 | 5.4 | 27.2 | 12.6 |
Exploration & eval'n expense | (0.2) | (0.1) | (5.5) | (0.2) |
Depletion, depreciation and amortization | (4.7) | (4.6) | (10.9) | (13.1) |
(Loss)/gain on acquisition | - | 4.8 | (0.2) | 34.2 |
Total comprehensive income | 3.2 | 4.4 | 4.1 | 30.9 |
Net cash generated from operating activities | 9.2 | 4.3 | 22.7 | 10.0 |
Cash and cash equivalents | 18.7 | 30.5 | 18.7 | 30.5 |
Note: | |
(1) | Refer to the "Non-IFRS Measures" section of this release below for details of Netback and EBITDAX. |
(2) | EBITDAX for Q3 2018 and 2017 and nine months to September 30, 2018 and 2017 includes US$1.5 million and US$1.0 million and US$3.7 million and US$2.6 million respectively of non-cash revenue relating to the grossing up of Egyptian Corporate Tax on the North West Gemsa PSC which is paid by the Egyptian State on behalf of the Company. |
Operational Highlights
Egypt
Morocco
Outlook:
Egypt
Morocco (75% Working Interest and operator)
Corporate
Paul Welch, President & CEO of SDX Energy, commented:
"The third quarter of 2018 has been one of the best financial periods in the Company's history, with net revenues up 50% from the same quarter last year. This was achieved by a strong operational performance across our North African portfolio.
In Egypt, we have successfully completed a seven well workover programme at North West Gemsa and expect to achieve average field production of c.4,400 boe/d of light crude oil (SDX net: 2,200 boe/d), in line with Company guidance. At Meseda, the successful ongoing drilling and ESP replacement programmes puts us on track to meet our 2018 guidance of c.3,800 bbl/d of heavy crude oil (SDX net: 732 bbl/d). We made substantial progress at South Disouq during the quarter, and beyond, with a number of important operational milestones achieved including submitting the development lease application to the authorities and agreeing to a gas price of US$2.85/mcf. However, given important design updates to the central processing facility and the expected timing of obtaining final regulatory approvals, the Company now expects first production of 50-60 MMscf/d of conventional natural gas to be achieved at South Disouq during H1 2019.
In Morocco, the 240 km2 3D acquisition programme in the Gharb Centre permit has been successfully completed. The total cost for the project is expected to be in line with previous guidance, approximately US$6.0 million, with the acquired data now in the processing phase. In addition, we are very pleased that, with the gas sales contracts currently signed, we have achieved our previous guidance of 8-10 MMscf/d of conventional natural gas as at December 31, 2018. However, due to a delay in the start- up phase with one of these customers, our actual sales are likely to be just below 8 MMscf/d of conventional natural gas at year end.
We continue to see organic growth opportunities across our portfolio in addition to inorganic growth via acquisition or new licensing rounds that will enable us to enhance our scale and generate value for shareholders. We look forward to updating the market on these developments as appropriate."
KEY FINANCIAL & OPERATING HIGHLIGHTS
Unaudited interim consolidated financial statements with Management's Discussion and Analysis for Q3 2018 are now available on the Company's website at www.sdxenergy.com and on SEDAR at www.sedar.com.
Financial Statements | |||||
Prior | Three months ended | Nine months ended | |||
US$000s except per unit amounts | 2018 | 2017 | 2018 | 2017 | |
FINANCIAL | |||||
Gross revenues | 18,123 | 21,444 | 13,977 | 54,332 | 38,521 |
Royalties | (4,651) | (6,037) | (3,853) | (14,493) | (10,360) |
Net revenues | 13,472 | 15,407 | 10,124 | 39,839 | 28,161 |
Direct operating expense | (3,168) | (3,380) | (2,672) | (8,542) | (7,728) |
Netback | 10,304 | 12,027 | 7,452 | 31,297 | 20,433 |
EBITDAX | 8,585 | 10,995 | 5,405 | 27,203 | 12,643 |
Total comprehensive income | 640 | 3,169 | 4,408 | 4,140 | 30,941 |
per share – basic | 0.003 | 0.015 | 0.023 | 0.020 | 0.174 |
Cash, end of period | 25,234 | 18,713 | 30,469 | 18,713 | 30,469 |
Working capital (excluding cash) | 11,121 | 14,477 | 27,928 | 14,477 | 27,928 |
Capital expenditures | 14,742 | 11,017 | 3,423 | 35,707 | 5,738 |
Total assets | 143,176 | 146,239 | 138,898 | 146,239 | 138,898 |
Shareholders' equity | 116,246 | 119,848 | 116,981 | 119,848 | 116,981 |
Common shares outstanding (000's) | 204,493 | 204,706 | 204,459 | 204,706 | 204,459 |
OPERATIONAL | |||||
NW Gemsa oil sales (bbl/d) | 1,665 | 1,987 | 1,893 | 1,721 | 1,741 |
Block-H Meseda production service fee (bbl/d) | 706 | 802 | 551 | 690 | 606 |
Morocco gas sales (boe/d) | 656 | 615 | 611 | 645 | 568 |
Other products sales (boe/d) | 403 | 485 | 384 | 399 | 365 |
Total oil sales and production service fee boe/d | 3,430 | 3,889 | 3,439 | 3,455 | 3,280 |
Realized oil price (US$/bbl) | 68.41 | 70.76 | 48.28 | 67.71 | 47.46 |
Realized service fee (US$/bbl) | 54.37 | 55.50 | 36.41 | 53.65 | 34.84 |
Realized oil sales and production service fees ($/bbl) | 64.23 | 66.38 | 45.61 | 63.69 | 44.20 |
Realized Morocco gas price (US$/mcf) | 10.51 | 11.05 | 9.53 | 10.52 | 9.43 |
Royalties ($/bbl) | 14.90 | 16.88 | 12.17 | 15.36 | 11.57 |
Operating costs ($/bbl) | 10.15 | 9.45 | 8.44 | 9.06 | 8.63 |
Netback ($/bbl) | 33.00 | 33.62 | 23.54 | 33.18 | 22.82 |
About SDX
SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Rharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX's portfolio also includes high impact exploration opportunities in both Egypt and Morocco.
For further information, please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com.
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Paul Welch, Chief Executive Officer of SDX. Mr. Welch, who has over 30 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies. Mr. Welch holds a BS and MS in Petroleum Engineering from the Colorado School of Mines in Golden, CO. USA and an MBA in Finance from SMU in Dallas, TX USA and is a member of the Society of Petroleum Engineers (SPE).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Glossary
"bbl" | stock tank barrel |
"boepd" & "boe/d" | barrels of oil equivalent per day |
"bopd" & "bbl/d" | barrels of oil per day |
"DD&A" | depreciation, depletion and amortisation |
"E&E" | exploration and evaluation |
"ESP" | electrical submersible pump |
"G&A" | general and administrative |
"MCF" | thousands of cubic feet |
"MMscf/d" | million standard cubic feet per day |
"LIBOR" | London interbank offer rate |
"TD" | total depth |
Forward-Looking Information
Certain statements contained in this press release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking information. In particular, statements regarding; the Company's use of proceeds from the Facility; the timing of first gas at South Disouq; the Company's plans, production targets, volume targets, drilling, gas sales, production start-up dates, seismic work, testing and the timing and costs thereof; capital expenditures; operational expenditures; and the Company's outlook and corporate strategy, should all be regarded as forward-looking information.
The forward-looking information contained in this document is based on certain assumptions and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labor and services.
All timing given in this announcement, unless stated otherwise is indicative and while the Company endeavors to provide accurate timing to the market, it cautions that due to the nature of its operations and reliance on third parties this is subject to change often at little or no notice. If there is a delay or change to any of the timings indicated in this announcement, the Company shall update the market without delay.
Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to political, social and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; permitting risks; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to reference SDX's Management's Discussion & Analysis for the three and nine months ended September 30, 2018, which can be found on SDX's SEDAR profile at www.sedar.com, for a description of additional risks and uncertainties associated with SDX's business, including its exploration activities.
The forward-looking information contained in this press release is as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the included forward-looking information, except as required by applicable law. The forward-looking information contained herein is expressly qualified by this cautionary statement.
Non-IFRS Measures
This news release contains the terms "Netback," and "EBITDAX" which are not recognized measures under IFRS and may not be comparable to similar measures presented by other issuers. The Company uses these measures to help evaluate its performance.
Netback is a non-IFRS measure that represents sales net of all operating expenses and government royalties. Management believes that netback is a useful supplemental measure to analyze operating performance and provide an indication of the results generated by the Company's principal business activities prior to the consideration of other income and expenses. Management considers netback an important measure as it demonstrates the Company's profitability relative to current commodity prices. Netback may not be comparable to similar measures used by other companies. See Netback reconciliation to operating income/(loss) in note 20 to the Interim Consolidated Financial Statements.
EBITDAX is a non-IFRS measure that represents earnings before interest, tax, depreciation, amortization, exploration expense and impairment. EBITDAX is calculated by taking operating income/(loss) and adjusted for the add back of depreciation and amortization, exploration expense and impairment of property, plant and equipment (if applicable). EBITDAX is presented in order for the users of the financial statements to understand the cash profitability of the Company, which excludes the impact of costs attributable to exploration activity, which tend to be one-off in nature, and the non-cash costs relating to depreciation, amortization and impairments. EBITDAX may not be comparable to similar measures used by other companies. See EBITDAX reconciliation to operating income/(loss) in note 20 to the Interim Consolidated Financial Statements.
Oil and Gas Advisory
Certain disclosure in this news release constitute "anticipated results" for the purposes of National Instrument 51-101 of the Canadian Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the Company's resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume, flow rate and pay thickness attributable to the resources of the Company. Such estimates have been prepared by management of the Company and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, including those described above and various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.
Use of the term "boe" may be misleading, particularly if used in isolation. A "boe" conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE SDX Energy Inc.
Copyright 2018 Canada NewsWire
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