SDX strikes gas in Egypt
SDX Energy said March 22 that it had successfully found gas at an exploration well at Egypt's onshore South Disouq field.
The Middle East and north Africa-focused independent began drilling the SD-5X well on March 4, targeting the Warda prospect with gross unrisked P50 reserves estimated at 11bn ft3. SD-5X found a 55.5ft net-pay structure of gas sands at measured depths of around 6,973 ft. Its average porosity of 26.3% is in line with pre-drill estimates.
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The well will now be completed, tested and tied-in via SDX's existing SD-4X production well. SDX Energy said it expects the new well to be brought on stream in June, and will publish the readouts from its testing regime "in due course."
South Disouq holds multiple prospects that SDX CEO Mark Reid has said could extend the field's production life for another two or three years. Production has plateaued with baseline estimates, suggesting it will maintain the current level until 2024 at the latest if new reserves are not found.
SDX has a 37.9% working interest at SD-5X. It has agreed to divest 33% in the wider South Disouq licence to limit exposure after its Hanut exploration well came up dry.
A further two wells will be spudded at South Disouq this year. The campaign will continue with SD-12-East at Sobhi field due to launch mid-April, before wrapping up with the MA-1X probe targeting the Mohsen prospect in "mid-to-late May."
SDX booked a total comprehensive loss of $24mn in the 2021 calendar year, following impairments at Egypt and Morocco.
Mark Reid, CEO of SDX, said: "Our production guidance issued earlier this year did not reflect success at this well and as a result we will be providing updated guidance once the well is connected and producing.
"The three well campaign aims to further exploit the potential that we see in the South Disouq area. I look forward to updating the market further on the results of the SD-5X well-test and as the 2022 campaign progresses," he said.