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SDX Energy targets 100 Billion Cubic Feet of Natural Gas in Egypt

SDX
Posted: June 22, 2018 at 1:32 pm   /   by   /   comments (0)

North Africa focused oil & gas company SDX Energy Inc said Thursday it is targeting a minimum of gross 100 billion cubic feet of conventional natural gas at its South Disouq concession in Egypt.

SDX Energy holds a 55% working interest in South Disouq and in addition to the 100 bcf of conventional natural gas the company will also be targeting gross 1 million barrels of condensate. The plateau production rate is expected to be 55 million to 60 million standard cubic feet per day plus 500 to 600 barrels of condensate.

Eight more gas leads have been identified in Egypt targeting a possible 1 trillion cubic feet of conventional natural gas.

Paul Welch, the chief executive officer of SDX Energy, said the company was beginning to “review rig options for a 2019 drilling campaign” in South Disouq.

The company will spud its final SD-3X well at South Disouq around late June or early July with first production expected “at the end of 2018”.

SDX Energy also said its 75% interest Morocco project has identified 12 drill-ready gas prospects and will target over 20 billion cubic feet of conventional natural gas. The company will commence its Moroccan drilling campaign “in the spring of 2019”.

Shares in SDX Energy were trading up 0.7% at 61.95 pence on Thursday.

SDX Energy 2018 Drilling Program ‘Very Successful’ – Analysts

SDX Energy Inc’s 2018 drilling program has been “very successful” to date, according to oil and gas analysts at Cantor Fitzgerald Europe.

The company has announced several discoveries this year in both Egypt and Morocco, with the most recent, a gas discovery at the SD-4X well in Egypt, revealed on June 18.

“In Egypt, new wells at South Disouq have confirmed the prospectivity of the principal Abu Madi interval, whilst highlighting the potential of a new play in the Kafr El Sheik,” Ashley Kelty and Jack Allardyce, oil and gas research analysts at Cantor Fitzgerald Europe, said in a report sent to Rigzone.

“The three successful wells (out of four) on the license have demonstrated recoverable resource of more than 100 billion cubic feet of gas and 1 million barrels of condensate (c.18.6 million barrels of oil equivalent). This could deliver plateau production of 55-60 million cubic feet per day and 500-600 barrels per day (of condensate) for four years,” Kelty and Allardyce stated.

The analysts added that SDX’s 2017/18 drilling program in Morocco was a “huge success, with seven wells (from nine) successful, with new reserves added and a new play opened at Lalla Mimouna demonstrating substantial wider potential across the Rharb Basin”.

Commenting on the company’s plans for next year in a company statement released Thursday, SDX President and CEO, Paul Welch, said the business has already started to review rig options for a 2019 drilling campaign to target additional gas and oil prospectivity located within the South Disouq concession.

Welch also revealed that “high value” drilling opportunities had been identified in Morocco for 2019.

“In Morocco, we have identified a significant volume of low risk/high value drilling opportunities which we will be targeting in our next drilling campaign during 2019, as we continue to grow our customer base and meet local gas demand,” Welch added.

“We expect the upcoming 3D seismic acquisition to further derisk this prospectivity and we look forward to the commencement of our drilling campaign in the Spring of 2019,” he continued.

(Sources: Morningstar, Proactive Investors & Rigzone)

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