SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to provide an operations update.
The Company has signed a rig contract for the ST-6 rig with Sino-Tharwa Drilling Company (“Sino-Tharwa”) for its Ibn Yunus-1X exploration well at South Disouq, Egypt. The agreement is for four firm wells and one contingent well. Sino-Tharwa’s ST-6 rig is currently drilling for another operator and is anticipated to be released in late February 2018 from a location in the Western Desert, Egypt. It will then be mobilized to the Ibn Yunus prospect location. Following inspection and rig up, the well is anticipated to be spud in mid-March 2018.
Operations at the Ibn Yunus-1X well are anticipated to take 30 – 40 days and will be targeting the same Abu Madi conventional natural gas bearing intervals that were discovered in the SD-1X well in April 2017. After Ibn Yunus, the rig will move to the SD-1X discovery, where it will drill two appraisal wells, before moving on to the Kelvin-1X exploration prospect.
SDX is also pleased to announce that it has spud its Rabul 5 development well on the West Gharib Concession, Egypt. The Rabul 5 well is the first of two development wells planned for the field this year. The well is targeting both the Bakr and Yusr oil bearing intervals found in the Rabul 1 and 2 wells. Operations for Rabul 5 are anticipated to take approximately 30 days.
Drilling has been delayed at the Company’s KSS-2 development well due a failure of the top drive unit on the rig. The unit is currently being repaired, with drilling set to recommence later today. The Company expects the well to reach its target depth within the next 7 to 10 days. Well costs are not anticipated to be materially changed as the rig has been on zero rate while repairs on the top drive unit are being carried out.
The Company will also be publishing a Moroccan Business Overview video on its website this morning: http://www.sdxenergy.com/
Paul Welch, President and CEO of SDX, commented:
“We are pleased to have secured a drilling rig for our upcoming drilling campaign in Egypt, which is set to commence in March. The Ibn Yunus-1X and Kelvin-1X wells are targeting up to 150bcf and, if successful, will be tied back to the SD-1X processing facility.
Following our discovery at Rabul 2 in October 2017, we plan to drill two development wells on the West Gharib concession this year, as we believe the licence holds significant development potential and further upside for all our stakeholders. We look forward to updating our shareholders on our exciting drilling campaigns in both Egypt and Morocco in due course.”
SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Rharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt and Morocco.
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