LONDON, Nov. 25, 2016 /CNW/ - SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce its 2016 Third Quarter Financial and Operating Results ( "Q3 2016" or "9 months ended September 30, 2016"). 

Third Quarter 2016 Highlights

Corporate and Financial

• Key financial metrics for the 3 and 9 months ended September 30, 2016 and 2015 are:

• Comprehensive income of US$0.1 MM in 3 months ended September 30, 2016;
• Comprehensive loss of US$(25.9) MM for 9 months ended September 30, 2016 due predominantly to write down of US$(24.4) MM in the Bakassi West, Cameroon exploration asset resulting from the decision to withdraw from concession;
• Invested US$0.2 MM of capital expenditure into business during Q3 2016; and
• As at September 30, 2016 cash on hand of US$5.0MM and zero debt.

Operational Highlights

• Average daily oil sales and production service fees equated to 1,214 barrels of oil per day ("BOP/D") and average daily natural gas and natural gas liquids production equated to 141 barrels of oil equivalent per day for Q3 2016 ("BOEP/D")
• During the 9 months ended September 30, 2016 average daily oil sales and production service fees equated to 1,213 BOP/D and average daily natural gas and natural gas liquids production equated to 141 BOEP/D (to be invoiced at a future date to optimize revenue recovery);
• In North West Gemsa, completed six successful well workovers in the 9 months ended September 30, 2016, one of which was completed during Q3 2016;
• In Meseda, following the successful completion of an eight well workover program and strategic initiative focussed on development optimization and increasing production, the partners completed a fluid handling review during Q3 2016 and have now launched a tendering process to secure the equipment necessary to increase facility treating capacity;
• During H1 2016 the 3D seismic acquisition was completed in South Disouq ahead of schedule and under budget. Seismic data processing continues, with interpretation to date having identified potential for both oil and gas bearing prospects with strong Class III amplitude versus offset responses observed in several prospects. Enquiries have also been received from a number of operators regarding farming in to the licence; and
• Completed technical review of prospectivity at South Ramadan development concession and an evaluation of project economics is currently underway which may lead to an exit of the concession.

Outlook:

• Continue with well workover program at North West Gemsa;
• Continue with redevelopment, waterflood program and facility capacity upgrade at Meseda;
• Complete 3D seismic processing and interpretation in South Disouq and drill a carried exploration well in early 2017;
• Continue to minimise costs post business combination; and
• Continue to explore opportunities to expand the asset base in the North Africa region.

Paul Welch, President & CEO of SDX Energy, commented: 

"Today's Q3 report marks the end of an extremely busy and productive period for the company. We now possess a comprehensive dataset on South Disouq and have furthered our understanding of the geology, enabling us to identify the location of our 1^st exploration well in the concession.  We are also completing our final technical review and undertaking a tendering exercise on Meseda, after which we can start on the ground operations to increase production on the licence during the course of 2017.

Our high margin producing assets and an exciting exploration programme, combined with a strong balance sheet leave us well placed to capitalise on value accretive asset opportunities in the region."

KEY FINANCIAL & OPERATING HIGHLIGHTS

Unaudited interim consolidated financial statements with Management's Discussion and Analysis for Q3 2016 are now available on the Company's website at www.sdxenergy.com and on SEDAR at www.sedar.com.

About SDX

SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on Egypt. In Egypt, SDX has an interest in two production concessions: North West Gemsa and West Gharib (Meseda) both located in the Eastern Desert. SDX's portfolio also consists of South Ramadan, a development asset in the Gulf of Suez; South Disouq, an exploration asset in the Nile Delta.  For further information, please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com.

Advisory

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements" as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking statements. In particular, statements concerning the completion of and anticipated results from the workover program at North West Gemsa; the completion of the redevelopment and upgrade at Meseda, the exploration plans for the Company's asset at South Disouq, including the completion of the 3D seismic processing and interpretation, well location assessment and the drilling of a carried exploration well; should be viewed as forward-looking statements.

The forward-looking statements contained in this document are based on certain assumptions and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking statements because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services.

By their very nature, forward-looking statements are subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to political, social and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; failure to realize the anticipated benefits of the Transaction and to successfully integrate the Parties; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to reference SDX's Annual Information Form for the year ended December 31, 2015 for a description of additional risks and uncertainties associated with SDX's business, including its exploration activities, which can be found on SDX's SEDAR profile at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE SDX Energy Inc.