Update on SD-1X well: Gas discovery at initial target depth, drilling continues to lower horizon.
SDX Energy has announced that drilling on the carried SD-1X well at its South Disouq concession, where it holds a 55% equity interest and is operator in the Nile Delta area of Egypt has reached its first target depth. The SD-1X well is targeting gas in the upper Abu-Madi section, and oil from the deeper Abu Roash and AEB horizon.
To date the well has been drilled to a total depth of 7,777 ft. reaching its first target depth in the Abu Madi. The Company is pleased to announce that during drilling, conventional natural gas bearing horizons were encountered in the Abu Madi. The well encountered 65 ft. of net pay section with an average porosity of 25%. The results are in line with pre-drill estimates. Additional evaluation work is currently underway to provide an accurate recoverable volume estimate which will be the subject of a subsequent release.
Drilling will now continue to the deeper Abu Roash and AEB sections, targeting oil. SDX will provide further updates on the drilling campaign in due course.
Paul Welch, President and CEO of SDX, commented:
“It is clearly very encouraging to have made a gas discovery at the first of SD-1X’s target intervals. The 3D seismic data acquired and interpreted over the South Disouq concession has provided a very accurate view of the subsurface as the target interval has come in on prognosis. This provides us with additional encouragement for the deeper horizons where we are targeting oil. Any production testing of the Abu Madi or one of the deeper horizons will be undertaken after drilling operations have been completed and the rig has moved off location.”
“South Disouq is one strand in the SDX story. We have a diverse portfolio of assets in Egypt and Morocco, including further exploration opportunities. Irrespective of whether we have further success at SD-1X in the deeper horizon, this gas discovery and the ongoing development and facilities upgrades across our asset portfolio mean that we remain on track to build our production profile and maximise the value from our producing, development and exploration asset base. I am optimistic about our ability to deliver for our shareholders and also in the deeper sections of this well and look forward to reporting on our results in due course.”
(SDX Energy Press Release)