(Alliance News) - SDX Energy PLC on Thursday said an improvement in production in the first half of 2019 was offset by lower oil price and increased expenses.
The oil & gas company said its net revenue for the six months to the end of June grew to USD25.4 million from USD24.4 million a year earlier, as production increased by 9% to 3,539 barrel of oil equivalent a day. The growth was helped by successful drilling in Meseda and increased gas sales in Morocco.
On a quarter-on-quarter basis, second-quarter production of 3,366 barrels of oil equivalent per day was 9% lower than in the first quarter, primarily as a result of an increased water cut in North West Gemsa.
Net realised average oil and service fees of USD57 per barrel of oil equivalent were lower compared to USD62 a barrel of oil equivalent in the first half of 2018.
Pretax income, however, fell by almost a half to USD2.3 million from USD4.0 million year-on-year, due to higher general and administrative expenses, which grew to USD3.3 million from USD2.8 million.
In addition, depletion, depreciation, and amortisation was higher, at USD12.0 million versus USD6.2 million a year earlier. Exploration and evaluation expense, meanwhile, were reduced to USD615,000 from USD5.3 million.
"The company continues to make good progress toward achieving its three medium-term strategic objectives of securing first gas at South Disouq in the fourth quarter of 2019, executing an efficient and successful 12-well drilling campaign in Morocco in 2019/20, and continuing with our potential exploration drilling campaign in South Disouq in 2020," said Chief Financial Officer & Interim Chief Executive Mark Reid.
SDX Energy shares were trading 18% higher in London on Thursday at 22.50 pence each.
SDX Energy (SDX)