SDX Energy posts higher first-quarter revenue, trims annual output guidance

SDX Energy posted a rise in first-quarter revenue after it produced more oil and gas from its assets in Morocco, though it cut its annual gas output guidance. Revenue for the three months through March rose 15% to $13m, the company said. Output rose 22% to 3,715 barrels of oil equivalent per day, due to successful drilling in North West Gemsa and Meseda and increased gas sales in Morocco. However, due to a slower than anticipated run-rate of new customer additions and a scaling down of certain business lines at an existing customer, 2019 Morocco gas sales guidance was cut to 6.0m-to-6.5m standard cubic feet per day. Previous guidance was for a 2019 gross exit rate of 9.0-11.0MMscf/d. Construction of the South Disouq central processing facility, pipeline and well tie-ins continued in the first quarter with first gas now expected to be achieved in the fourth quarter of this year.