SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is pleased to announce the spudding of the SD-5X exploration well, targeting the Warda prospect in the South Disouq development lease.
SD-5X spudded on 4 March 2022 and is expected to reach TD in approximately three weeks. The primary target, which has already been encountered in the Ibn Yunus and Sobhi field reservoirs, is the basal Kafr El Sheikh sand at around 6,800ft TVDSS. The well is targeting an estimated gross unrisked P50 EUR of 11bcf and has a 40% chance of success. In a success case, SD-5X will be tied-in to the CPF via the existing SD-4X flow-line and should be on production by the end of June 2022.
SD-5X is the first of three wells to be drilled in the South Disouq area during 2022. The second well in the campaign will be the SD-12_East well on the Sobhi Field (planned spud of mid-April). SD-12_East will target an estimated gross unrisked P50 EUR of 7bcf, and will be followed by the MA-1X well (Mohsen) targeting an estimated gross unrisked P50 EUR of 21bcf. The Mohsen well is planned to spud mid-to-late May.
Mark Reid, CEO of SDX, commented:
“I am pleased to announce the spudding of the first well in the South Disouq 2022 drilling campaign. This campaign will further explore and exploit the potential that we see in the South Disouq area and, if successful, could extend the production life of the asset by a further two to three years. I look forward to updating the market further as the campaign progresses.”
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 55% operated interest in the South Disouq 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
