SDX Finds More Gas in Egypt
North Africa-focused SDX Energy has found more gas at its flagship South Disouq field in Egypt, it announced on April 8.
The company's 7,245-ft Sobhi well at the South Disouq exploration permit in the Nile Delta encountered a 108-ft gas pay at a depth of 6,506 ft, it said in a statement. Its management's best estimate of the find is 24bn ft3 of recoverable gas and condensate – three times more than considered necessary for commercial development.
"This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis," SDX CEO Mark Reid said. "South Disouq represents our flagship asset and in the current economic climate this fixed price, low cost gas development is highly cash generative for the group."
SDX brought South Disouq on stream in November, and output reached 50-52mn ft3/day in the first quarter. Its launch helped the company deliver a 14% growth in production last year.
The Sobhi discovery will enable SDX to maintain South Disouq's production at 50mn ft3/yr through to 2023-2024, Reid said. It will be tied to the field's existing gas processing plant at a low cost.
SDX finished drilling another exploration well at South Disouq last month but found only sub-commercial volumes of gas.