SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce an update on its KSR-14 and KSR-15 development wells on the Sebou permit in Morocco (SDX 75% working interest). KSR-14 and KSR-15 are the first two wells of a nine well drilling programme on the Company’s Sebou, Gharb Centre and Lalla Mimouna permits in Morocco.
Further to the update on 13 November, the KSR-14 well has now been tested and has recorded an average flow rate conventional natural gas into the sales line of 6.4MMscfd. The well will remain on production for an extended period prior to being shut in for a pressure build-up as part of the year end reserve estimate process.
At the KSR-15 development well the completion equipment has been run and connection to the nearby infrastructure is now underway. Completion of the well is expected to occur within three weeks of rig departure with flow testing targeted for early December 2017. The rig move to the next location, KSR-16, has now commenced.
On the Gharb Centre exploration permit, the seismic tender for 240km2 of new 3D seismic has been completed and the contract awarded to CGG, a market leading seismic provider. The seismic acquisition is expected to commence at the end of Q2 2018.
Paul Welch, President and CEO of SDX, commented:
“This is further positive newsflow from our active Moroccan drilling campaign. In particular, the KSR-14 test results are ahead of our internal expectations, especially in light of the fact that we are only flowing from the Hoot sand, as opposed to both the Hoot and Guebbas. Despite this, the well still managed to produce at a rate that would allow it to meet our entire daily sales commitment by itself. This increases our confidence that we can reliably increase our production rates to meet additional customer demands based upon the results of the current program as we target an increase in our sales volumes by 50% in 2018.
“Overall, we are moving forward with the campaign apace and are pleased with the progress to date. We look forward to providing further updates in due course.”
