SDX Announces H1 Highlights from Egypt and Morocco

Monday, July 12, 2021

In its H1 results announcement, SDX Energy Plc provided an update on its operating results for the six months ended 30 June 2021. Highlights from its Egypt and Morocco program included:

• The first phase of the Morocco drilling campaign, which consisted of three appraisal/development wells in SDX’s operated Gharb Basin acreage in Morocco (SDX: 75% working interest), was successfully completed in June 2021.
• The OYF-3, KSR-17 and KSR-18 wells were all commercial successes, with OYF-3 and KSR-17 already connected and producing into the Company’s infrastructure, with KSR-18 to be tested and connected shortly. Management estimates that 1.5-1.6bcf of gross resources have been added by these wells, which is in line with pre-drill P50 estimates. Preparations are underway for the drilling of up to two additional wells in Morocco later in the year.
• During the first half of the year, the Company received the COVID-19 delayed laboratory analysis of the cuttings and side wall cores from the LMS-2 well. This information confirmed that LMS-2 had successfully encountered the targeted thermogenic gas source that exists in the Top Nappe horizon but that the reservoir in the Lalla Mimouna Nord concession has low permeability and the well is unlikely to flow conventionally. As such, the Company will not risk US$0.5 million testing this well, nor will it commit to further investment in the Lalla Mimouna Nord concession post the end of the concession date in July 2021 as a result of the limited likelihood of it being commercially developed. Accordingly, the Company expects to recognise a US$10.3 million non-cash impairment charge in Q2 ahead of relinquishment, of which US$2.8 million relates to LMS-2.
• In South Disouq, the IY-2 step-out development well, the first of a two-well campaign, was spud in late June with the Company expecting to update the market on its result later in July. The second well, the HA-1X exploration well on the Hanut prospect, is expected to spud after the completion of IY-2 in early August. HA-1X, which is targeting gross unrisked mean recoverable volumes of 139bcf with a 33% chance of success, is expected to take approximately one month to drill and the Company expects to update the market on its result in mid-September.
• In West Gharib, following the ten-year concession extension granted earlier in 2021, preparations continued for a campaign of three to four development wells, the first of which is expected to spud in early Q3.

Mark Reid, CEO of SDX, commented: “It has been a busy period for the Company, with multiple drilling campaigns running in tandem and successful results to show for our efforts already. We are very pleased that our three appraisal/ development wells drilled in Morocco are commercial successes, with two of the wells already connected and producing, contributing to average production of 5,930 boe/d for the period, above our 2021 guidance. The outlook for the remainder of the year is exciting as we look forward to results of the IY-2 step-out development well at South Disouq as well as spudding and drilling the Hanut well, which if successful could provide a transformational resource increase for SDX. We look forward to updating the market on these key catalysts in due course.”

« GO BACK

You may also like

" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">

First LNG Realized at the Greater Tortue Ahmeyim Project

" alt="United Energy Acquires Western Desert Producer APEX">

United Energy Acquires Western Desert Producer APEX

" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">

Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG

" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">

ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System

" alt="Tullow Highlights 2025 Operational Plans in Ghana">

Tullow Highlights 2025 Operational Plans in Ghana

" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">

TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years

" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">

Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession

" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">

Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market