SDX Energy Reports $24 Million Loss from North African Oil Projects

During the period, SDX recorded impairments of $9.5 million related to its South Disouq projects in Egypt and Lalla Mimouna Nord in Morocco, where the Company’s performance issues had an impact on the mobilization of equipment and personnel.

In Egypt, the company failed to find oil or gas during the drilling campaign of a lateral well on the Hanut prospect of the South Disouq concession. As a result, it sold 33% of its stake there for $5.5 million and retains 66% to continue to generate revenue while reducing risk exposure on two other exploration wells to be drilled this year.

In Morocco, SDX recorded a non-cash charge of $10.3 million before relinquishing the Lalla Mimouna Nord concession. However, it also holds a direct stake in three drillings, all located in the Gharb basin, which will be launched this year.