Full year results

SDX Energy has grown significantly over the past 12 months. To some degree, the full year results of 24 March 2017 are less relevant as an indicator of current operations of the company. The January acquisition of Circle Oil’s Moroccan and Egyptian assets and current drilling of South Disouq stand to add to the production assets of Meseda and North West Gemsa, from which SDX produced 2.1kboe/d in 2016. SDX is in good health, holding $18m in cash as of March and has material new cash flows from the Moroccan gas production. Newsflow from South Disouq will remain the near-term catalyst and could be transformational if successful. We have adjusted our valuation, leaving an updated full NAV of 57p/share.