SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company, is pleased to provide an update on drilling operations at the Ibn Yunus-2 well in the South Disouq Exploration Permit onshore Nile Delta, Egypt (SDX 55% working interest).
The well was drilled to a measured depth of 8,025 feet, encountering 40.5 feet net-pay of high-quality gas-bearing sands, with an average porosity of 23.4%, near the base of the Kafr El Sheikh (“KES”) formation. The top of the KES sand was encountered at a measured depth of 6,768 feet. Whilst we still await the well test results in a few weeks’ time, the Company’s expectations are that the IY-2 well can maximise recovery from the Ibn Yunus Field and help maintain current gross production levels of c.45MMscfe/d at the South Disouq Central Processing Facility.
Management expects that the IY-2 well will be tied in via a short flowline to the Ibn Yunus-1X location where an existing flowline connects to the South Disouq Central Processing Facility. The gross cost of this tie-in is estimated at US$0.55 million. A further announcement will be made in the coming weeks on completion of the testing of IY-2.
The drilling rig is now completing the well before moving to the Hanut-1X exploration well for a planned spud early in August 2021 which is targeting gross unrisked mean recoverable volumes of 139bcf with a 33% chance of success .
Mark Reid, CEO of SDX, commented:
“This is a good result that fully justifies the drilling of the Ibn Yunus-2 well. With only a short tie-in needed, we expect the well to begin to contribute to production by the end of August and we will update the market on testing in the coming weeks. The rig will move to the Hanut-1X location as soon as the Ibn Yunus-2 completion operations are finished, and we look forward to updating the market further on this potentially transformational well.”
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 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
Mark Reid
Chief Executive Officer
Tel: +44 203 219 5640
