SDX Energy is an Egyptian focused E & P company. With its strong balance sheet management is focused on building up its high margin production at its Meseda licence (SDX 19% entitlement interest). Here the work-over and waterflood programme is expected to double production to over 8,000 bbl/day. The company has exciting exploration in its South Disouq licence (SDX 55%) where success at its well at the end of the year could be transformational for shareholder value. The net cash on the balance sheet will also be used to bolster the business.
SDX Energy was recently formed through the merger of Sea Dragon and Madison Petrogas and is an Egyptian management focused E & P player. The company has a strong balance sheet with net cash which the management will use to build up the business organically and through acquisition.