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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, Aug. 28, 2018 /CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce its financial and operating results for the three and six months ended June 30, 2018. All dollar values are expressed in United States dollars net to the Company unless otherwise stated.
Highlights – three and six months ended June 30, 2018
Corporate and Financial
Three months ended |
Six months ended | |||
US$ millions except per unit amounts |
2018 |
2017 |
2018 |
2017 |
Net Revenues |
13.5 |
9.9 |
24.4 |
18.0 |
Netback(1) |
10.3 |
6.9 |
19.3 |
13.0 |
Net realized average oil/service fees - |
64.23 |
42.62 |
61.97 |
43.44 |
Net realized average Morocco gas price - |
10.51 |
9.44 |
10.27 |
9.38 |
Netback – US$/boe |
33.00 |
21.64 |
32.91 |
22.51 |
EBITDAX(1) (2) |
8.6 |
5.2 |
16.2 |
7.2 |
Exploration & eval'n expense |
(2.1) |
(0.1) |
(5.3) |
(0.2) |
Depletion, depreciation and amortization |
(3.7) |
(4.9) |
(6.2) |
(8.4) |
(Loss)/gain on acquisition |
- |
(0.1) |
(0.2) |
29.4 |
Total comprehensive income/(loss) |
0.6 |
(0.4) |
1.0 |
26.5 |
Net cash generated from operating activities |
9.4 |
8.1 |
20.3 |
11.1 |
Cash and cash equivalents |
25.2 |
27.6 |
25.2 |
27.6 |
Note: |
|
(1) |
Refer to "Non-IFRS Measures" section of this release below for details of Netback and EBITDAX |
(2) |
EBITDAX for Q2 2018 and 2017 and H2 2018 and 2017 includes US$1.2 million and US$0.9 million and US$2.2 million and US$1.6 million |
Operational Highlights
Egypt
The Kelvin-1X exploration well was spud on May 8, 2018 and drilled to a total depth of 8,075 feet, encountering 606 net feet of high quality reservoir interval in the Abu‐Madi formation with an average porosity of 21%. However, the sands had low gas saturation and were not deemed to be commercial. The well was subsequently plugged and abandoned.
The SD-4X appraisal well was spud on June 4, 2018 and drilled to a total depth of 7,806 feet and encountered 89 feet of net conventional natural gas pay in the Abu Madi horizon, with an average porosity in the pay section of 24%. The well came in on prognosis with a reservoir section of similar quality but thicker than the original SD-1X discovery well. The well was completed in the Abu Madi section and tested at a maximum rate of 30.4 MMSCF/D during an eight hour clean up period. The well was then shut in for eight hours, during which time no pressure decline was observed. Following this the well was flowed at varying choke sizes for two successive 12-hour periods at average rates of 5.4 MMSCF/D, 8.6 MMSCF/D respectively and then one extended flow period of 24-hours at an average rate of 10.5 MMSCF/D. The well was then suspended until it can be connected to the surface facilities that are being developed at the SD-1X location.
Post-period end, the SD-3X appraisal well was spud on July 5, 2018, drilled to a total depth of 7,842 feet and encountered 32.6 feet of net conventional natural gas pay in the Abu Madi and Kafr el Sheik horizons, with an average porosity in the pay sections of 21.7%. The well was completed as a producer in the Abu Madi horizon and tested post period end at flow rate of 16.6MM SCF/D of conventional natural gas. In order to optimise the potential recovery from the SD-3X well, the Abu Madi horizon will be completed and produced initially before re-entering the well to complete and produce the Kafr el Sheik horizon. The well will be connected to the infrastructure located adjacent to the original SD-1X discovery.
Given the above, and assuming all necessary regulatory approvals are obtained at South Disouq, first gas is targeted by the end of 2018, at an initial gross plateau production rate of conventional natural gas at between 50-60 MMSCF/D from the Ibn Yunus discovery and the three development wells in the SD-1X discovery structure.
Morocco
Permit |
Name |
Result |
Net Pay |
Rate |
Sebou |
KSR-14 |
Conventional Natural |
20.0m |
6.40 MMSCF/D |
Sebou |
KSR-15 |
Conventional Natural |
17.2m |
7.52 MMSCF/D |
Sebou |
KSR-16 |
Conventional Natural |
14.2m |
8.43 MMSCF/D |
Gharb Centre |
ELQ-1 |
Uncommercial |
2.0m |
Not Tested |
Sebou |
ONZ-7 |
Conventional Natural |
5.0m |
15.34 MMSCF/D |
Sebou |
KSS-2 |
Dry Hole |
Nil |
Not Tested |
Sebou |
SAH-2 |
Conventional Natural |
5.2m |
13.45 MMSCF/D |
Lalla Mimouna |
LNB-1* |
Conventional Natural |
Primary target of 300m of gas |
Not Yet Tested |
Lalla Mimouna |
LMS-1** |
Conventional Natural |
16.4m |
Not Yet Tested |
Well results announced *April 20, 2018, **May 7, 2018 |
Outlook:
Egypt
Morocco (75% Working Interest and operator)
Corporate
Paul Welch, President & CEO of SDX Energy, commented:
"The first half of 2018 was a busy period for SDX and one which saw the Company significantly increase its net revenue and overall production year on year.
We also made significant operational progress across our portfolio with discoveries from 20 of the 23 wells drilled in the recent Moroccan and Egyptian drilling campaigns, representing a success rate of 87%.
In Egypt, at Meseda, we enjoyed success at our Rabul-5, Rabul-4, MSD-16 and MSD-15 (post-period end) appraisal wells. This was matched in North West Gemsa with successful wells at AASE-25, AASE-27 and Al-Ola-4 (post-period end), and at South Disouq, with discoveries at our Ibn Yunus-1X, SD-4X and SD-3X wells (post-period end). Due to this drilling success, the Company is able to reconfirm its FY 2018 gross production guidance for North West Gemsa and Meseda at 4,400 BOE/D and 3,800 BBL/D respectively. We also remain on target to commence production at South Disouq at gross 50-60 MMSCF/D by the end of the year.
In Morocco, the Company completed its nine well drilling programme with seven gas discoveries, a 78% success rate throughout the campaign. The last two exploration wells appear to be very significant successes and upon completion of testing it is hoped that they will have opened up new producing areas for the Company. The Company has signed Gas Sales Agreements with three new customers: Peugeot, Setexam and Extralait, and is still targeting gross production of 8-10 MMSCF/D of conventional natural gas by the end of 2018.
Throughout the period, we remained focused on strict capital discipline and continued to monitor opportunities that would enable us to increase our asset base in North Africa. As at June 30, 2018, we are well funded for our remaining work commitments with US$25.2 million of cash and an undrawn Credit Facility of US$10.0 million and we continue to target doubling our production by the end of 2018."
KEY FINANCIAL & OPERATING HIGHLIGHTS
Unaudited interim consolidated financial statements with Management's Discussion and Analysis for Q2 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 |
Six months ended | ||||
US$000s except per unit amounts |
2018 |
2017 |
2018 |
2017 | ||
FINANCIAL |
||||||
Gross Revenues |
14,763 |
18,123 |
13,420 |
32,887 |
24,544 | |
Royalties |
(3,803) |
(4,651) |
(3,519) |
(8,455) |
(6,507) | |
Net Revenues |
10,960 |
13,472 |
9,901 |
24,432 |
18,037 | |
Operating costs |
(1,994) |
(3,168) |
(2,958) |
(5,162) |
(5,006) | |
Netback |
8,966 |
10,304 |
6,943 |
19,270 |
13,031 | |
EBITDAX |
7,623 |
8,585 |
5,187 |
16,208 |
7,207 | |
Total comprehensive income/(loss) |
331 |
640 |
(427) |
971 |
26,520 | |
per share – basic |
(0.002) |
0.003 |
(0.002) |
0.005 |
0.155 | |
Cash, end of period |
29,277 |
25,234 |
27,627 |
25,234 |
27,627 | |
Working capital (excluding cash) |
13,814 |
11,121 |
15,421 |
11,121 |
15,421 | |
Capital expenditures |
9,948 |
14,742 |
1,504 |
24,690 |
2,315 | |
Total assets |
140,497 |
143,176 |
132,766 |
143,176 |
132,766 | |
Shareholders' equity |
115,282 |
116,246 |
102,559 |
116,246 |
102,559 | |
Common shares outstanding (000's) |
204,493 |
204,493 |
186,900 |
204,493 |
186,900 | |
OPERATIONAL |
||||||
NW Gemsa oil sales (bbl/d) |
1,507 |
1,665 |
1,832 |
1,586 |
1,654 | |
Block-H Meseda production service fee (bbl/d) |
558 |
706 |
623 |
633 |
631 | |
Morocco gas sales (boe/d) |
664 |
656 |
651 |
660 |
543 | |
Other products sales (boe/d) |
307 |
403 |
419 |
355 |
352 | |
Total oil sales and production service fee |
3,036 |
3,430 |
3,525 |
3,234 |
3,180 | |
Realized oil price (US$/bbl) |
62.81 |
68.41 |
45.56 |
65.77 |
46.97 | |
Realized service fee (US$/bbl) |
50.00 |
54.37 |
33.98 |
52.45 |
34.16 | |
Realized oil sales and production service fees ($/bbl) |
59.34 |
64.23 |
42.62 |
61.97 |
43.44 | |
Realized Morocco gas price (US$/mcf) |
10.03 |
10.51 |
9.44 |
10.27 |
9.38 | |
Royalties ($/bbl) |
13.92 |
14.90 |
10.97 |
14.44 |
11.24 | |
Operating costs ($/bbl) |
7.30 |
10.15 |
9.22 |
8.82 |
8.65 | |
Netback ($/bbl) |
32.80 |
33.00 |
21.64 |
32.91 |
22.51 | |
Consolidated Balance Sheet | |||||||
US$'000s |
As at June 30, 2018 |
As at December 31, 2017 | |||||
Assets |
|||||||
Cash and cash equivalents |
25,234 |
25,844 | |||||
Trade and other receivables |
29,141 |
37,656 | |||||
Inventory |
3,176 |
5,157 | |||||
Current assets |
57,551 |
68,657 | |||||
Investments |
2,725 |
2,724 | |||||
Property, plant and equipment |
58,752 |
54,445 | |||||
Intangible exploration and evaluation assets |
24,391 |
15,231 | |||||
Non-current assets |
85,868 |
72,400 | |||||
Total assets |
143,419 |
141,057 | |||||
Liabilities |
|||||||
Trade and other payables |
20,096 |
19,459 | |||||
Deferred income |
495 |
495 | |||||
Decommissioning liability |
- |
1,063 | |||||
Current income taxes |
605 |
915 | |||||
Current liabilities |
21,196 |
21,932 | |||||
Deferred income |
488 |
737 | |||||
Decommissioning liability |
5,198 |
3,479 | |||||
Deferred income taxes |
290 |
290 | |||||
Non-current liabilities |
5,977 |
4,506 | |||||
Total liabilities |
27,173 |
26,438 | |||||
Equity |
|||||||
Share capital |
88,785 |
88,785 | |||||
Contributed surplus |
6,322 |
5,666 | |||||
Accumulated other comprehensive loss |
(917) |
(917) | |||||
Retained earnings |
22,056 |
21,085 | |||||
Total equity |
116,246 |
114,619 | |||||
Equity and liabilities |
143,419 |
141,057 |
Consolidated Statement of Comprehensive Income | ||||||||||
Three months ended June 30 |
Six months ended June 30 | |||||||||
US$'000s |
2018 |
2017 |
2018 |
2017 | ||||||
Revenue, net of royalties |
13,472 |
9,901 |
24,432 |
18,037 | ||||||
Revenue |
||||||||||
Direct operating expense |
(3,168) |
(2,958) |
(5,162) |
(5,006) | ||||||
Gross profit |
10,304 |
6,943 |
19,270 |
13,031 | ||||||
Exploration and evaluation expense |
(2,064) |
(87) |
(5,314) |
(160) | ||||||
Depletion, depreciation and amortisation |
(3,657) |
(4,892) |
(6,190) |
(8,414) | ||||||
Stock-based compensation |
(324) |
(42) |
(656) |
(85) | ||||||
Share of profit from joint venture |
292 |
337 |
526 |
711 | ||||||
Release of historic operational tax provision |
300 |
- |
300 |
- | ||||||
Inventory write-off |
(490) |
- |
(490) |
- | ||||||
Gain on sale of office asset |
23 |
- |
23 |
- | ||||||
General and administrative expenses |
||||||||||
- Ongoing general and administrative expenses |
(1,520) |
(1,896) |
(2,765) |
(4,077) | ||||||
- Transaction costs |
- |
(155) |
- |
(2,373) | ||||||
Operating income/(loss) |
2,864 |
208 |
4,704 |
(1,367) | ||||||
Net finance expense |
(33) |
(40) |
(54) |
(77) | ||||||
Foreign exchange (loss)/gain |
(452) |
529 |
(438) |
608 | ||||||
(Loss)/gain on acquisition |
- |
(63) |
(174) |
29,401 | ||||||
Income before income taxes |
2,379 |
634 |
4,038 |
28,565 | ||||||
Current income tax expense |
(1,739) |
(1,061) |
(3,067) |
(2,045) | ||||||
Deferred income tax expense |
- |
- |
- |
- | ||||||
Total current and deferred income tax expense |
(1,739) |
(1,061) |
(3,067) |
(2,045) | ||||||
Total comprehensive income for the period |
640 |
(426) |
971 |
26,520 | ||||||
Net income per share |
||||||||||
Basic |
$0.003 |
$(0.002) |
$0.005 |
$0.155 | ||||||
Diluted |
$0.003 |
$(0.002) |
$0.005 |
$0.153 |
Consolidated Statement of Changes in Equity | ||||||
Six months ended June 30 | ||||||
US$'000s |
2018 |
2017 | ||||
Share capital |
||||||
Balance, beginning of period |
88,785 |
40,275 | ||||
Issuance of common shares |
- |
39,491 | ||||
Share issue costs |
- |
(781) | ||||
Balance, end of period |
88,785 |
78,985 | ||||
Contributed surplus |
||||||
Balance, beginning of period |
5,666 |
5,128 | ||||
Stock-based compensation for the period |
656 |
85 | ||||
Balance, end of period |
6,322 |
5,213 | ||||
Accumulated other comprehensive loss |
||||||
Balance, beginning of period |
(917) |
(917) | ||||
Balance, end of period |
(917) |
(917) | ||||
Retained earnings/(accumulated loss) |
||||||
Balance, beginning of period |
21,085 |
(7,222) | ||||
Total comprehensive income for the period |
971 |
26,520 | ||||
Balance, end of period |
22,056 |
19,298 | ||||
Total equity |
116,246 |
102,579 |
Consolidated Statement of Cash Flows | |||||||||
Three months ended June 30 |
Six months ended June 30 | ||||||||
US$'000s |
2018 |
2017 |
2018 |
2017 | |||||
Cash flows generated from/(used in) operating activities |
|||||||||
Income before income taxes |
2,379 |
634 |
4,038 |
28,565 | |||||
Adjustments for: |
|||||||||
Depletion, depreciation and amortization |
3,657 |
4,892 |
6,190 |
8,414 | |||||
Exploration and evaluation expense |
1,783 |
- |
5,033 |
53 | |||||
Finance expense |
33 |
40 |
54 |
77 | |||||
Stock based compensation |
324 |
42 |
656 |
85 | |||||
Loss/(gain) on acquisition |
- |
63 |
174 |
(29,401) | |||||
Foreign exchange (gain)/loss |
269 |
35 |
(58) |
87 | |||||
Gain on sale of office asset |
(23) |
- |
(23) |
- | |||||
Release of historic operational tax provision |
(300) |
- |
(300) |
- | |||||
Inventory write-off |
490 |
- |
490 |
- | |||||
Tax paid by State |
(1,192) |
(884) |
(2,167) |
(1,638) | |||||
Share of profit from joint venture |
(292) |
(337) |
(526) |
(711) | |||||
Operating cash flow before working capital movements |
7,128 |
4,485 |
13,561 |
5,531 | |||||
Decrease in trade and other receivables |
1,070 |
3,928 |
8,342 |
5,611 | |||||
Increase/(decrease) in trade and other payables |
2,454 |
(94) |
289 |
240 | |||||
Increase in inventory |
(180) |
- |
(769) |
- | |||||
Cash generated from operating activities |
10,472 |
8,319 |
21,423 |
11,382 | |||||
Income taxes paid |
(1,091) |
(229) |
(1,091) |
(237) | |||||
Net cash generated from operating activities |
9,381 |
8,090 |
20,332 |
11,145 | |||||
Cash flows (used in)/generated from investing activities: |
|||||||||
Property, plant and equipment expenditures |
(7,726) |
(129) |
(13,203) |
(242) | |||||
Exploration and evaluation expenditures |
(5,946) |
(1,291) |
(8,311) |
(1,579) | |||||
Dividends received |
525 |
- |
525 |
- | |||||
Acquisition of subsidiaries |
- |
- |
- |
(28,056) | |||||
Cash balance acquired during the period |
- |
- |
- |
3,108 | |||||
Net cash used in investing activities |
(13,147) |
(1,420) |
(20,989) |
(26,769) | |||||
Cash flows generated from/(used in) financing activities: |
|||||||||
Issuance of common shares |
- |
(20) |
- |
38,690 | |||||
Finance costs paid |
(8) |
(40) |
(11) |
(77) | |||||
Net cash (used in)/generated from financing activities |
(8) |
(60) |
(11) |
38,613 | |||||
(Decrease)/increase in cash and cash equivalents |
(3,774) |
6,610 |
(668) |
22,989 | |||||
Effect of foreign exchange on cash and cash equivalents |
(269) |
(35) |
58 |
(87) | |||||
Cash and cash equivalents, beginning of period |
29,277 |
21,052 |
25,844 |
4,725 | |||||
Cash and cash equivalents, end of period |
25,234 |
27,627 |
25,234 |
27,627 |
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 |
"BCF" |
billion standard cubic feet |
"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, production start-up dates, seismic work and the timing and costs thereof; capital expenditures; operational expenditures; and the Company's 2018 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 six months ended June 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.
In addition to the uncertainties listed above, due to the level of information available, there is still uncertainty associated with the volume estimates prepared by management for the LNB-1 discovery in Morocco. Some of the risks and uncertainties are outlined below:
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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