SDX Energy PLC successfully completes initial 3 wells of 2021 drilling campaign in Morocco
SDX Energy PLC (LON:SDX) said it completed the initial three well phase of its 2021 drilling campaign in Morocco and that all three wells were a commercial success.
This first phase of the drilling campaign consisted of three appraisal/development wells in SDX’s operated Gharb Basin acreage, where the company has a 75% working interest.
“The OYF-3, KSR-17 and KSR-18 wells in Morocco were all commercial successes, and OYF-3 and KSR-17 are already connected and producing into our infrastructure,” said SDX chief executive Mark Reid. “We expect KSR-18 to be tested and connected in the next two weeks.”
“The gross 1.5-1.6bcf [billion cubic feet] reserves added by these wells is in line with pre-drill P50 estimates and it is anticipated that this will enable us to continue to deliver gas to our customers in line with their contractual requirements,” he added.
The AIM-listed company said it will now start the preparations to drill up to two additional wells in Morocco later in the year.
“In Egypt we are expecting to commence the drilling of the IY-2 step out development well at South Disouq in the coming days, and our planning for the potentially transformational HA-1X exploration well is significantly progressed, with spud expected in Q3 2021,” said Reid.
“This gross 139bcf prospective target, which has a 33% chance of success, has the potential to significantly transform the resource profile of the company.
“Finally, with the four well campaign in West Gharib also expected to start soon, I look forward to updating the market in the coming months on what is looking to be a very busy and exciting period of activity.”
SDX has 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, located onshore in the Eastern Desert, adjacent to the Gulf of Suez.