SDX Energy spuds MSD-21 development well at West Gharib concession, Egypt
AIM-listed SDX Energy, the MENA-focused energy company, has announced the spudding of the MSD-21 infill development well on the Meseda field. The well is the first, in a fully funded, 12 well development campaign on the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. The development drilling campaign is aimed at growing production from current rates of c. 2,400bbl/d to c. 3,500 – 4,000bbl/d by early 2023.
The MSD-21 infill development well on the Meseda Field (SDX:50% working interest) spudded on 16 October and is targeting the Asl Formation reservoir at approx. 3,200ft TVDSS. It is estimated that the well will take around four weeks to drill, complete and tie-in to the existing infrastructure. MSD-21, with an expected gross cost to drill and tie in of US$0.9-US$1.0 million, is anticipated to come on-line and produce at around gross 300bbl/d, which would have an immediate effect on Group cashflow and result in a payback period of less than one year at current oil prices. The Company expects to update the market on its result in mid-November.
Mark Reid, CEO of SDX, commented:
‘In today’s higher oil price environment, I am excited to announce the spudding of the first well in a 12 well infill development campaign on our West Gharib oil fields in Egypt. With H1 2021 netback of US$33/bbl at US$65/bbl Brent, West Gharib is currently a very high margin asset in our portfolio and the MSD-21, and subsequent wells, will boost the production and cashflow from these fields in the coming months. I look forward to updating the market further as the campaign progresses.’
(Source: energy-pedia news)