SDX Energy provides Egypt operations update
SDX Energy, the North Africa focused oil and gas company, has provided an operational update ahead of the forthcoming drilling campaign at South Disouq, as well as an update on activity at the Meseda field in Egypt.
Following the recent interpretation of 3D seismic data at South Disouq, and the subsequent identification of oil and gas bearing prospects, SDX and its partner have agreed on the location for drilling the exploration well, as announced on 14 November 2016. SDX has confirmed that Zenith Energy, the Aberdeen based well engineering consultancy, has been appointed to provide technical assistance for the drilling operations. In addition to working with Zenith Energy, SDX has signed a Letter of Intent (‘LOI’) with Sino Tharwa Drilling Company, the rig contractor, who will supply the Sino-Tharwa 6 rig at South Disouq. The rig is due to arrive late February 2017 with the carried exploration well being spud shortly thereafter.
Following completion of the design work on the Electrical Submersible Pump (ESP) programme, SDX has now completed the final technical review of the Meseda facility upgrade. SDX is currently moving into the implementation phase during Q1 2017. The equipment procured for the upgrade is expected to double the treatment capacity of the central production facility (‘CPF’). This will allow the Company to maximise the field’s potential and enable the Company to target up to a 100% increase on current production levels from the licence. Once the facilities upgrade is complete, the workover programme will recommence.
Paul Welch, CEO of SDX Energy, commented:
‘Today’s announcement highlights that we are entering an exciting period for the Company as we move into the drilling phase of our work programme at South Disouq. Solid operational progress was made throughout 2016 and we have continued to build on this momentum in order develop the exploration potential of the concession, as evidenced by the signing of an LOI with Sino Tharwa and the appointment of Zenith Energy. In addition to South Disouq, we have seen good progress made at Meseda with the completion of the final technical review, leaving us well placed to start on the construction activities, which will maximise production from this asset. Closing the recent acquisition has provided the Company with the ability to further grow our production base in both Egypt and Morocco and it is our intent to do so in the near term. The Company is off to a very good start in 2017 and I look forward to reporting on the progress of our activities in subsequent periods.’
(SDX Energy Press Release)