Mark Reid, CEO of SDX, commented: Salah and Sohbi are very exciting wells for the Company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities.
We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course.”
SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company, is pleased to announce that the SD-6X (Salah) well at South Disouq in Egypt (SDX 55% working interest) has commenced drilling operations.
Salah is expected to a reach its targeted depth of approximately 9,000 feet in late March/early April and is targeting gross P50 unrisked prospective resources of c.71 bcfe, as estimated by management. Salah’s primary targets are in the same Kafr el Sheikh and Abu Madi formations that the Company’s existing four wells are already producing from.
On completion of Salah, the rig will move to the location of the SD-12X (Sobhi) well, approximately six kilometres to the west, which is targeting gross P50 unrisked prospective resources of c.33 bcfe, as estimated by management. Sobhi’s primary target is also in the Kafr el Sheikh formation at a depth of approximately 7,000 feet.
If successful, the Salah and Sobhi wells would require short, 8.0 kilometre and 5.8 kilometre, tie-ins to the South Disouq Central Processing Facility with SDX’s share of the tie-in cost estimated at US$2.5 million and US$1.9 million respectively.
The Company is reviewing a number of development concepts depending on the size of any discovery that is made. To fully produce the 71 bcfe gross P50 unrisked resource targeted in the Salah well, two further development wells would likely be required.
The 33 bcfe gross P50 unrisked resource targeted in the Sobhi well, would potentially only require one further development well.
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 three producing assets. In the South Disouq gas field in the Nile Delta, the Company is operator and has a 55% working interest.
In the Eastern Desert, adjacent to the Gulf of Suez, the Company has two non-operated oil interests; 50% in North West Gemsa and 50% in Meseda. In Morocco, SDX has a 75% working interest in the Sebou concession, situated in the Gharb Basin.
These producing gas assets in Morocco are characterised by exceptionally low operating costs and fixed price gas contracts 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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