StockMarketWire.com - MENA-focused oil and gas company SDX Energy's strong performance in 2020 enabled it to finish the year debt-free with $9.6million of cash and $2.5million of undrawn availability from its EBRD facility. This will increase to US$10million in the coming months after the standard conditions precedent in our new facility are satisfied.

The company has also had a promising start to 2021 with its SD-12X (Sobhi) well, where it has 100% entitlement interest, coming on stream six weeks ahead of schedule. Production from two of SDX Energy's three core assets beat 2020 guidance (being South Disouq and Morocco, where production is now back to pre-Covid close down levels) while its third core asset (West Gharib) came in at the top end of guidance.

Management estimates that SD-12X has approximately 24 bcf of recoverable resources and can produce at a rate of up to 10-12 MMscf/d. At present, the well is producing at approximately 5-7 MMscf/d and will continue to be monitored to determine its optimum production rate. SDX has a 100% working interest in the production from this well.

Furthermore, as a result of its continued focus on capital discipline, SDX Energy's 2020 capex spend was approximately $1million lower than its guidance of $26million.

The firm's CEO Mark Reid said: "When viewed in light of a year which was full of operational challenges and volatile commodity prices, I see our robust cash generation as a hallmark of our business and is testament to the commitment of the team at SDX. We have started 2021 in a very positive position with an exciting programme of nine wells to be drilled in the year and I expect us to build on the successes of 2020 by discovering more resource and continuing our resilient cash generation."




At 9:19am: [LON:SDX] SDX Energy Inc. share price was 0p at 15.25p



Story provided by StockMarketWire.com