RESULT OF FLOW TEST AT SD-1X DISCOVERY
SDX Energy Inc. (SDX.V) has released results of the well test conducted on the SD-1X well following the recent natural gas discovery at South Disouq, Egypt, where the company has a 55-per-cent operated working interest.
The SD-1X well was drilled to a total depth of 7,777ft, and encountered 82 ft. of net pay with an average porosity of 25% in the Abu-Madi section.
Well test operations have now commenced and the well has successfully flowed dry natural gas at a stabilised rate of 25.8 MMscf/d on a 48/64" choke. This flow rate exceeded initial expectations and was limited by the surface facilities put in place to test the well. The well has now been shut in for an initial build-up after which a series of additional flowing periods will be conducted and fluid samples taken. The results from the well testing program will be integrated into the on-going reserve evaluation work. The results of that exercise will then be incorporated into an early development plan proposal for discussion with our partners and the authority. This information will be included in a future release to the market over the summer.
Working with its partners, SDX will now aim to bring the discovery into commercial production as soon as possible.
Paul Welch, President and CEO of SDX, commented:
"Underpinned by the strong local gas demand, today's news is highly positive and confirms the overall success of the recent SD-1X campaign. Not only do we have this excellent result in the upper Abu Madi section, we also remain very upbeat about the oil potential in the deeper Cretaceous horizon, where a working petroleum system was also discovered.
Whilst the work of bringing the gas discovery into production is our primary focus, we are also planning for further drilling in the lower Cretaceous age horizons where we see additional potential. South Disouq remains, however, one strand in the SDX story. Concurrently, we are extremely active across the rest of our North Africa portfolio, which will include development and exploration drilling in Morocco in the next quarter. We look forward to providing further updates over the coming months."
SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Rharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX's portfolio also includes high impact exploration opportunities in both Egypt and Morocco.