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Egyptian gas performing better than expected
21 May 2018 , 17:22Neftegaz.RU566
Cairo, May 21 - Neftegaz.RU. 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 1st gas from the license before the end of 2018,» 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 Eni started production from a 3rd 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, 7 months ahead of schedule, less than 2 years after the initial discovery and 33 % 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 % from the same period last year.
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