Egyptian gas performing better than expected

North African-focused SDX Energy said earlier this week that production from its portfolio could double by the end of the year
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  May 18, 2018 at 6:03 AM
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May 18 (UPI) -- A day after boasting that its North African production could double by year's end, SDX Energy said its performance in Egypt was better than expected.

SDX Energy said the flow of natural gas from its South Disouq discovery in Egypt exceeded its expectations. Flow was limited the infrastructure put in place during the testing process.

"We remain optimistic about further positive news flow as we move towards delivering first gas from the license before the end of 2018," President and CEO Paul Welch said in a statement.

A relatively minor producer, SDX focuses primarily on Egypt and Morocco, both emerging basins in North Africa. In a report earlier this week, SDX said its portfolio in Egypt posted minor, but consistent, gains.

Egypt is quickly positioning itself as a major player in the natural gas market. Last week, Italian energy company Eni started production from a third unit at the Zohr field, one of the largest gas fields in the Mediterranean Sea. The project is producing about 1.1 billion cubic feet per day and the acceleration follows a start date in December.

In February, BP announced gas was being produced from its Atoll basin offshore Egypt, seven months ahead of schedule, less than two years after the initial discovery and 33 percent under the initial cost estimate.

In January 2017, the SDX Energy paid $28.1 million to take over the Egyptian and Moroccan businesses of Circle Oil. Welch said this week the company was well funded with zero debt and on pace to double its production from its North African portfolio by the end of the year.

SDX posted revenue to March 31 of $11 million, up 35 percent from the same period last year.

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