Significant work programme starting

SDX Energy has completed the $10m equity raising to fund an accelerated drilling programme in Egypt and Morocco. This means it will be drilling wells with unrisked returns generating IRRs of more than 100%, according to the company, underlining the value of the H217 drilling programme. After the fund-raise, SDX will be fully funded to take the South Disouq discovery to first gas in early 2018, and to drill two exploration wells to explore for a further 150bcf in Egypt while increasing its Moroccan drilling programme to nine wells to boost resources and increase production. These will have the effect of increasing certainty on future developments and bringing forward valuable cash flows. These positive effects have been offset by a reduction in our long-term oil price assumption and some modelling adjustments. Our full NAV is now 64p/share.