The strength of SDX Energy’s financial position, resulting from its strong balance sheet and positive cash flow, is a key differentiator from many small-cap E&P companies in the sector. This stable financial position allows SDX Energy to execute its very active work programme which provides multiple catalysts for shareholders as it drills production, development and exploration wells in the coming years.
Compelling Investment Case
- Strong financial position – US$17.4 million of cash and no debt
- Low operating costs: c.US$$10/bbl
- Highly cash generative asset base – generating c.US$3.5 million in cash flow per month
- Plans to increase net production by over 5,000 boepd in 2019
- Netback up c.45% year on year to US$41.7 million in 2018
- WI production across portfolio up year on year: 4,787 boepd (21/3/19)
- Signing new gas sales contracts in Morocco, 5 year fixed price contract @ > $10.50/MCF
- Delisting from TSX will yield significant corporate savings – expected to complete in Q2 2019
Why Egypt?
- Multiple world class hydrocarbon basins
- Excellent operating environment with competitive fiscal terms and low operating costs
- Stable Government focused on economic growth
- Developing as a regional gas hub, creating both internal and external gas sales potential
- Significant growth potential – 2.5 TCF of prospectivity identified in SDX acreage
Why Morocco?
- One of the best Fiscal Regimes in the industry
- Gas market significantly underserved by domestic production
- SDX owns 75% of the only private pipeline network in the country – future discoveries will have to go through SDX’s line to be commercialised
- Significant growth prospects, with 80+ Bcf of potential