SDX01 Feb 2022 07:50
TRADING AND OPERATIONS UPDATE - 2021 PRODUCTION AT UPPER END OF GUIDANCE AND CAPEX WITHIN GUIDANCE - PRODUCTION AND CAPEX GUIDANCE PROVIDED FOR 2022
SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company, is pleased to provide an update on its unaudited operating results, capex, cash, and liquidity position for the twelve months ended 31 December 2021 and sets out production and capex guidance for 2022. All monetary values are expressed in United States dollars net to the Company unless otherwise stated.
Mark Reid, CEO of SDX, commented:
"I am pleased to announce that 2021 production was at the higher end of guidance and that capex was within guidance. Our cash management in the year has also been strong, with cash at the year-end growing to US$10.6 million from US$10.1 million last year.
Our full year 2022 production guidance is lower than 2021 actual production of 5,886 boe/d mainly due to the proposed South Disouq disposal announced today and natural depletion across wells at South Disouq. Production in Morocco in 2022 will be lower due to a decision not to immediately renew a five-year customer contract until we have better visibility on future gas supply and gas pricing to support the full term of a new contract. As a result of this decision, we are reducing 2022 Moroccan capex guidance by c.US$6.0 million compared to 2021. Notwithstanding this, we are still planning to drill up to sixteen wells this year but expect overall capex guidance to be lower in 2022 at US$21.5-US$23.0 million."