SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company, is pleased to provide an update on well-testing operations at the recent SD-5X (Warda) discovery well (SDX Working Interest: 36.85%) in the South Disouq Development lease.
The well was perforated in the basal Kafr El Sheikh gas sand and was tested on 30 March 2022, opening the well for a two-hour clean-up period only. The well flowed at a controlled rate of 10.4 MMscf/d on a 26/64″ choke. When connected, it is anticipated that the well will produce at an optimum stabilised rate of 8-9 MMscf/d.
SD-5X will now be tied-in via a short connection (600 metres) to the SD-4X flow-line and into the CPF. It is estimated that the tie in cost will be c.US$0.5 million (gross) and that SD-5X will be on production in June 2022, when the well will be subject to a longer rig-less test. By conducting the longer test after tie-in, SDX will maximise saleable production from the well. The results of the longer test will be the subject of a further update to the market in due course.
With the completion of SD-5X operations, the rig is now moving to the second well in the three well campaign, SD-12_East on the Sobhi Field (with a planned spud date in mid-April). The third well in the campaign will be the MA-1X well targeting the Mohsen prospect (planned spud in mid-to-late May).
Mark Reid, CEO of SDX, commented:
“This is a very good result and a pleasing start to our 2022 drilling campaign, which aims to accelerate cash flow and exploit the continued potential that we see in the South Disouq area. The tie-in of the well is short and low cost, and the well is expected to be on production in June. I look forward to updating the market on the longer-term test in the coming months and on the progress of the other wells in our 2022 campaign.”
About SDX
SDX is an international oil and gas exploration, production, and development company, headquartered in London, United Kingdom, with a principal focus on MENA. In Egypt, SDX has a working interest in two producing assets: a 36.9% operated interest in the South Disouq and Ibn Yunus gas fields and a 67.0% operated interest in the Ibn Yunus North gas field in the Nile Delta and a 50% non-operated interest in the West Gharib concession, which is located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in four development/production concessions, all situated in the Gharb Basin. The producing assets in Morocco are characterised by attractive gas prices and exceptionally low operating costs. SDX has a strong weighting of fixed price gas assets in its portfolio with low operating costs and attractive margins throughout, providing resilience in a low commodity price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt and Morocco.
For further information, please see the Company’s website at www.sdxenergygroup.com or the Company’s filed documents at www.sedar.com.
Competent Persons Statement
In accordance with the guidelines of the AIM Market of the London Stock Exchange, the technical information contained in the announcement has been reviewed and approved by Dr Rob Cook, VP Subsurface of SDX. Dr. Cook has 30 years of oil and gas industry experience and is the qualified person as defined in the London Stock Exchange’s Guidance Note for Mining and Oil and Gas companies. Dr. Cook holds a BSc in Geochemistry and a PhD in Sedimentology from the University of Reading, UK. He is a Chartered Geologist with the Geological Society of London (Geol Soc) and a Certified Professional Geologist (CPG-11983) with the American Institute of Professional Geologists (AIPG).
For further information:
SDX Energy Plc
Mark Reid
Chief Executive Officer
Tel: +44 203 219 5640
