SDX Energy has identified potential for both oil and gas on its South Disouq concession in Egypt through an initial assessment of 3D seismic acquired, as previously reported.
Further interpretation of the data has now indicated several Abu Madi and Kafr El Sheikh prospects displaying strong Class III amplitude versus offset (AVO) responses. Testing of similar responses in offset areas has resulted in numerous discoveries at these stratigraphic levels. These responses have allowed SDX to high grade several prospects for drilling in the near term. These positive AVO responses further de-risk the prospectivity in the area, allowing SDX and its partners to achieve the intended goal of the 3D seismic acquisition program.
SDX, who operates the South Disouq with a 55% equity interest on the concession, and its partner, have agreed on the target and location for drilling the carried exploration well, identified during the interpretation of data. The permitting process has commenced and a team has been engaged to provide technical assistance on the well, with drilling set to commence by early Q1 2017.
The company revealed that the South Disouq has generated interest from a number of operators looking to farm in to the license. Being that SDX is already fully carried on the remaining South Disouq obligations, it is unlikely that SDX will farm down any additional equity, however it did agree to accept proposals from select firms to acquire an interest.
(Source: Petroleum Africa)