SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is pleased to announce the commencement of the second phase of its 2021 drilling campaign in Morocco, with the spud of the KSR-19 well.
KSR-19 will be followed by the SAK-1 well which, if successful, will open a new exploration area for SDX in the Company’s Lalla Mimouna Sud concession.
Mark Reid, CEO of SDX, commented:
“I am pleased to announce that the Company has commenced the second phase of its 2021 drilling campaign in Morocco. This second phase will consist of two wells with the objective of adding reserves to allow us to continue to deliver gas to our customers in line with their contractual requirements. Furthermore, with SAK-1, we hope to open a new exploitation area at Lalla Mimouna Sud to the west of our core producing area. I look forward to updating the market in the coming month on the results of these wells.”
2021 Moroccan Drilling Campaign
This first phase of the 2021 Morocco drilling campaign consisted of three successful appraisal/development wells in the Company’s operated Gharb Basin acreage (SDX: 75% working interest). The second phase consists of two wells, the first of which is KSR-19 which spudded on 18 November targeting the Main Hoot reservoir at an approximate depth of approximately 1,780 metres TVDSS. This will be followed by the SAK-1 well targeting a Guebbas reservoir at a depth of approximately 1,300 metres TVDSS.
Both wells are looking to encounter shallow, biogenic gas accumulations. KSR-19 is near to the Company’s existing infrastructure, thus enabling the tie-in to be completed quickly and at low cost. SAK-1 is a little further from the existing infrastructure, but will still be relatively quick to tie-in and, if successful, will open a new area for follow on drilling and further exploitation. The Company is utilising the drilling rig that was previously stacked in its yard in Morocco, thereby incurring minimal mobilisation costs.
The campaign is expected to complete in December 2021, at which point the Company will update the market on results.
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.sdxenergy.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 Rob Cook, VP Subsurface of SDX. Dr. Cook has over 25 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
Chief Executive Officer
Tel: +44 203 219 5640