SDX Starts Egypt Drilling Campaign
UK-based North Africa explorer SDX Energy has kicked off the start of a planned four-well programme on its South Disouq gas concession in Egypt.
Ibn Yunus-1X well, expected to take some 30 days to drill, has been spudded, the company said March 26, adding that it will target the same conventional natural gas bearing Abu Madi intervals discovered in the SD-1X well in April 2017.
It will be followed by two appraisal wells (SD-4X and 3X) in the original SD-1X structure which, if successful, will be used as producers thereby completing the base case development plan for the new field. In its development plan technically approved by the Egyptian authorities, SDX forecasts a plateau rate from the SD-1X field of 50mn ft3/d of conventional natural gas (SDX 55% working interest) but says that, with any exploration success, the field plateau rate could potentially increase up to 100mn ft3/d.
Start-up of production at South Disouq is expected to commence in the second half of 2018. The final well in the program, Kelvin-1X, will be an exploration well which, if successful, would be tied into the facilities located at the SD-1X field. SDX CEO Paul Welch remarked: "We currently have over 300 km2 of 3D seismic in the block with identified potential of up to 2 trillion ft3 (gross) of conventional natural gas. Success at Ibn Yunus will de-risk a large portion of that volume."
Industry analyst Malcolm Graham-Wood commented on the company's 2017 annual results March 23: "SDX is fully funded for all operational needs and of course any potential acquisition opportunities that may arise. SDX remains amongst the most solid plays within the bucket list for its low cost, high margin offering and significant upside potential."