(Sharecast News) - Exploration and production firm SDX Group has achieved first gas from its South Disouq SD-12X well in Egypt six weeks ahead of schedule.
SDX stated its 100% owned well had unearthed a commercial discovery in mid-2020, before coming online on 21 December, and was now estimated to host to roughly 24.0bn cubic feet of recoverable resources and be capable of producing at 10-12.0m cubic feet per day.
The AIM-listed group also reported group production of 6,400 barrels of oil for 2020, topping guidance of 6,000-6,250 barrels of oil per day, a 58% year-on-year improvement, with SDX's performance driven by new wells coming online at South Disouq.
SDX also noted its strong cash position of $9.6m at the end of December, leaving the firm fully-funded for planned activities in 2021.
Chief executive 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."
As of 0945 GMT, SDX shares were up 5.92% at 19.07p.
SDX Energy (SDX)3 May 2024 15:50
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