SDX Energy discovers more gas in North Africa

SDX 23The company keeps on expanding its oil and gas presence in North Africa. (Image source: Erin/Flickr)SDX, the North Africa-focused oil and gas firm, has announced another gas discovery at South Disouq in Egypt with the SD-3X well

The well was drilled to TD at 7,842 ft, and encountered 32.6 ft of net pay across the Abu Madi and Kafr El Sheik intervals, with average porosity of 22 per cent.

This marks the second discovery in the 2018 appraisal drilling campaign (alongside the SD-4X well), and the third successful well on the South Disouq license.

The well will now be completed and tested in the principal Abu Madi interval, before re-entry and completion in the Kafr El Sheik interval - again this interval will be tested.

A successful test will see the well tied back to local infrastructure ahead of first gas production from South Disouq later this year. This latest discovery is a great boost for SDX, and the presence of gas to the northeast of SD-4X will help delineate the boundary of the structure in the Abu Madi, whilst also help determine the potential of the Kafr El Sheik interval.

SD-3X Discovery lifts hopes for South Disouq development

The discovery well encountered gas across two horizons and the company see the presence of gas in the Kafr El Sheik as adding to the potential across the license. While the net pay was lower than encountered at prior discoveries, this was to be expected as the sands are seen to thin out towards the edge of the structure on 3D seismic. It does, however, demonstrate the quality of the reservoir model and the optimal well location chosen.

According to SDX, the rig will move off location once the well has been completed in the Abu Madi interval, with testing to take place around 30-45 days thereafter. Completion and testing of the Kar El Sheik will follow after, ahead of tie in to local infrastructure.

The company sees further testing and development milestones as offering opportunities to rerate the stock ahead of first gas later in Q4/18.

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