SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company, is pleased to announce the result of its Rabul-3 well in the West Gharib Concession in Egypt (SDX 50% Working Interest & Joint Operator).
The Rabul-3 development well in the West Gharib Concession in Egypt was drilled to a total depth of 5,129 feet and encountered approximately 116 feet of net heavy oil pay across the Yusr and Bakr formations. The Yusr and Bakr formations are of excellent reservoir quality with an average porosity of 21%.
The well will be completed as a producer later this month, connected to the central processing facilities at Meseda and is expected to be brought on-line at an average stabilised rate of approximately 300 bopd , which is at the upper end of pre-drill expectations.
Mark Reid, CEO of SDX, commented:
“We are very pleased to announce this latest result in our low cost Meseda/Rabul area, which, thanks to its close proximity to existing infrastructure, will be contributing to cashflow in the coming weeks. This well provides further support to our FY 2020 gross production guidance of 3,200 – 3,300 bopd for Meseda. We look forward to updating the market further on our Egyptian drilling campaign in due course.
Even at our $55/bbl long-term planning oil price, approximately 80% of 2020 and 90% of 2021 forecast cash flows will come from our fixed price gas businesses in Egypt and Morocco and accordingly we remain strongly positioned to weather the current fall in oil prices.”
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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