SDX Energy PLC (LON:SDX) has set its 2021 production guidance at 5,620 to 5,920 barrels oil equivalent and said it plans to spend some US$25mln to US$26.5mln of capex.
The Egpyt and Morocco focused firm noted that the production guidance range is slightly lower than the like-for-like run-rate last year.
“I am pleased to provide our production and capex guidance for 2021, where after a very solid year of production in 2020, we continue on a similar profile, albeit with some contingency worked in for maintenance in Egypt,” said Mark Reid, SDX chief executive in a statement.
“Partially offsetting this, I am very pleased to report that Moroccan production has returned to the levels seen before last year’s COVID-19 closedown.”
READ: South Disouq well sees first gas ahead of schedule
The capex is due to cover one exploration well and one development well at the South Disouq field and up to four wells at West Garib, in Egypt, along with as many as five new wells in Morocco. A programme of well workovers also feature in the schedule for 2021.
Reid added: “This year’s expected operating cashflows, together with our existing cash of approximately US$10mln, will provide ample liquidity to carry out a busy drilling campaign of nine to eleven wells targeting exploration and development opportunities in Egypt and Morocco, including the potentially transformational gross 139bcf Hanut-1X well in South Disouq in Egypt and the testing of our newly discovered Top Nappe play in Morocco.
“Furthermore, we expect that our EBRD credit facility will soon return to US$10 million of availability and thus provide us with additional liquidity if required.”
The first quarter sees workovers at South Disouq before the planned Ibn Yunus-2X development well in the second quarter.
One work over is slated for Q1 in Morocco followed by two new wells in the Q2, meanwhile, at West Gharib a programme of at least three wells kicks off in the second quarter.
