SDX Energy enjoys fruitful quarter, warns of Dissouq delay

North Africa focused oil and gas company SDX Energy shares dropped on Monday as it warned of later first production from its South Dissouq gas project but said the third quarter was "one of the best" in its history.

Boosted by higher oil prices, revenues rose 52% to $15.4m in the three months ended 30 September and 41% year-to-date to $39.8m.

Net production levelled out at 3,889 barrels per day over the first nine months of the year, with the North West Gemsa field yielding 2,471, the Meseda field pulling in 802 and the firm's Morocco operations adding 615.

Cash generation doubled to $9.2m during the quarter, as SDX was boosted by improved pricing throughout the period.

Chief executive Paul Welch, said: "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."

However, Welch did warn that, given design updates to its central processing facility and delays in receiving certain regulatory approvals, SDX now expects to achieve first production at its South Dissouq gas project at some point throughout the first half of 2019.

As of 1220 GMT, SDX shares had dropped 5.47% to 43.13p.