SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is pleased to announce the spudding of the Hanut-1 exploration well (“HA-1X”), the second well in the Company’s 2021 two-well drilling campaign in South Disouq following the successful IY-2 well announced in July.
The HA-1X exploration well on the Hanut prospect spudded on 4 August. HA-1X is targeting a Basal Kafr El Sheikh prospect at approximately 5,200 feet TVDSS. The Hanut prospect is estimated to contain gross unrisked mean recoverable volume of 139bcf (23.2 million boe) with a 33% chance of success. SDX has a 55% working interest in the well and the Company’s audited working interest 2P reserves as at 31 December 2020 equated to 11.1 million boe. The well is expected to take approximately one month to drill, and the Company will update the market on completion of drilling (and if successful, testing) operations.
Mark Reid, CEO of SDX, commented:
“After our previous successful campaigns at South Disouq where we have achieved six discoveries from eight wells drilled, most recently at IY-2, I am excited to announce the spudding of the potentially transformational HA-1X exploration well on our Hanut prospect. With gross unrisked mean prospective resources of 139bcf (23.2 million boe) it is significantly larger than previous prospects and has the potential to materially increase the reserves of the Company if successful. We look forward to updating the market further as the well progresses.”
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 five 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
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