SDX Finds More Gas in Morocco

North Africa-focused SDX Energy has struck gas at a well in northwest Morocco, the company said on March 4.

The BMK-1 well was drilled to a depth of 1,551 metres and encountered commercial quantities of gas in both target horizons, SDX said in a London stock filing. In late January the company also found gas after drilling the OYF-2 well in Morocco.

These finds confirm that the prospectivity at SDX's existing core production and development area extends to the north, the company explained. Based on the discoveries and existing 3D seismic data, it has opened a new play fairway, de-risking up to 20bn ft³ of P50 close-by prospective resources for future drilling. Around 10bn ft³ of this gas is in and around BMK-1.

"The BMK-1 result in Morocco is excellent news, confirming that together with the OYF-2 discovery in January, we can now plan to develop a material and valuable new prospective area to the north of our existing infrastructure in a market where we are the only gas producer and where we receive gas prices of between $10-12 per 1,000 ft³," CEO Mark Reid said. "An additional 20bn ft³ of P50 prospective resources has the potential to significantly extend reserve life and support lower CO₂ emissions at our customers."

SDX also said its SD-6X well in Egypt had found only sub-commercial volumes of gas. It expects to spud its next well in the country, SD-12X, in the next two to three weeks, targeting a potential 33bn ft³ of gas.