SDX Energy posts stellar set of full-year figures

The AIM-traded company said its netback rose to $28.9m from $7.6m, with its net realised average oil price and service fees per barrel improving to $46.70 from $31.51.

Its net realised average Morocco gas price was $9.51 per million cubic feet, with no comparator available from the prior year.

SDX swung to a total comprehensive profit of $28.3m, from the $28m loss it made in the 2016 financial year.

Net cash generated from operating activities was $21.6m, compared to a net cost of $1.9m in the previous year, with the firm ending the year with cash and cash equivalents of $25.8m, from $4.7m.

“2017 was an exceptional year for SDX, with the acquisition of Circle Oil's assets, enabling us to substantially increase production, and cash flow, over the course of the year,” said president and CEO Paul Welch.

“We continued to see strong operational performance throughout the year across our portfolio.”

In North West Gemsa, Welch said the company was seeing the results of its 12 successful workovers, and in Meseda it successfully drilled two exploration wells in 2017 followed by the successful Rabul-5 appraisal well earlier this month.

The remainder of 2018 would see a second appraisal well, Rabul-4, followed by two development wells on the Meseda area of the concession.

“Our nine well drilling programme in Morocco has seen five discoveries from seven wells drilled to date and we look forward to continuing this drilling success throughout the rest of 2018.

“As a company, we continue to focus on low cost, high margin production, thereby creating further value for our shareholders.

“Our strong funding position means we are well placed to capitalise on any suitable, value enhancing asset opportunities that may arise going forward,” Welch added.