SDX Energy starts drilling campaign in South Disouq with spudding of IY-2 well
AIM-listed SDX Energy, the MENA-focused energy company, has announced the commencement of the South Disouq drilling campaign, which will comprise two wells over the next few months.
Mark Reid, CEO of SDX, commented:
‘After our previous highly successful campaigns at South Disouq where we have achieved five discoveries from seven wells drilled, I am excited to announce the commencement of our next phase of drilling. The IY-2 step-out development well was successfully spud and we anticipate that, upon completion, it will be rapidly tied into our existing infrastructure and begin production in Q3 2021. In addition, the planning for the potentially transformational HA-1X exploration well on our Hanut prospect continues, with spud expected in mid Q3 2021. This gross 139bcf prospective target, which has a 33% chance of success, has the potential to significantly transform the resource profile of the Company and we look forward to updating the market further as the well progresses.’
South Disouq Drilling Campaign:
The upcoming drilling campaign will consist of one step-out development well and one exploration well in the Company’s operated South Disouq (SDX: 55%WI) acreage in Egypt.
The first well, IY-2, which spud on 28 June 2021, is a development well targeting the high porosity and permeability Basal Kafr El Sheikh reservoir at approx. 6,600ft in the Ibn Yunus Field. The well, which will take approx. one month to drill, can be rapidly tied into the existing infrastructure at the nearby IY-1X well with production anticipated to start in late Q3 2021. It is expected that the IY-2 well will maximise recovery from the Ibn Yunus Field and help to maintain current gross production levels of c.45mmscfe/d at the South Disouq Central Processing Facility. The Company expects to update the market on the result of this well in late July/early August.
The second well in the campaign, the HA-1X exploration well on the Hanut prospect, is expected to spud after the completion of IY-2 in early August. HA-1X, which is targeting gross unrisked mean recoverable volumes of 139bcf with a 33% chance of success is also expected to take approx. one month to drill and the Company expects to update the market on its result in mid-September.