SDX has reported progress in Egypt
LONDON -- SDX Energy Inc., the North Africa focused oil and gas company, has provided an update on operational developments in Egypt. A full operations update will be announced in late January 2019.
The SRM-3 well at South Ramadan (SDX 12.75% working interest and non-operator), reached a target depth of 15,635 ft and the operator has reported encountering 75 ft of net conventional oil pay in the Matulla section (primary target), 20 ft of net conventional oil pay in the Brown Limestone formation and a further 15 ft of net conventional oil pay in the Sudr section. The well will be completed in the Matulla section and then tested to establish whether the well will flow at a commercial rate.
At South Disouq (SDX 55% working interest and operator), the development lease application submitted by SDX and its partner has been approved by the relevant authorities and construction of the pipeline and central facility have commenced. First production from the license remains on track to commence towards the end of first-half 2019, with SDX expecting to achieve a gross plateau production rate of conventional natural gas of between 50-60 MMscfd.
The 170 km2 3D seismic acquisition program at South Disouq is 50% complete and is expected to conclude in early February. The seismic data will then be processed and interpreted by the end of Q3 2019, with drilling on the license set to resume shortly thereafter.
Paul Welch, President & CEO of SDX Energy, commented:
“The company has made a positive start to 2019, with operational progress continuing to be made across the Egyptian portfolio. The reservoir sections encountered in the SRM-3 well are encouraging and we look forward to seeing how this interval performs when tested, as this will provide additional insight on the volume potential of the section. SDX has made considerable headway at South Disouq, and following formal approval from the authorities, the relevant construction work is well underway. We continue to be excited about bringing the asset into production in first-half 2019. “
