SDX Targets Late 4Q South Disouq Start-up
North Africa-focused independent SDX Energy has reported on the SD-4X appraisal well test at its South Disouq concession, onshore Egypt's Nile Delta, and says it plans to produce there by end-2018.
The latest well flowed at a maximum rate of 30.4mn ft3/d for eight hours clean, and one subsequent extended flow test of 24-hours with varying chokes at an average of 10.5mn ft3/d.
CEO Paul Welch said the plan is to connect this well to infrastructure adjacent to the prior SD-1X discovery in the coming months: “We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50mn ft3/d of conventional natural gas.” SDX operates the assets and has a 55% stake.
Equity analysts Cantor Fitzgerald called the result “very encouraging” and said the maximum flow rate at this latest SD-4X well exceeded that at the discovery SD-1X well (25.8mn ft3/d) and supports South Disouq’s full development.
AIM- and Toronto-listed SDX has begun acquiring 3D seismic on 240km2 of its Gharb Centre acreage onshore Morocco, expected to take 45 to 60 days. The data will be processed and interpreted during Q4 2018, it said.