logo-loader
viewSDX Energy Inc

SDX Energy makes new discovery at South Disouq after drilling solo

The discovery opens a "low-cost, highly-cash generative" field expansion for South Disouq

SDX Energy Inc - SDX Energy makes new discovery at South Disouq after drilling solo

SDX Energy PLC (LON:SDX) has announced a new discovery at the South Disouq project in Egypt, with the SD-12X (Sobhi) well encountering 108 feet of net high-quality gas-bearing sands.

"This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis,” Mark Reid, SDX chief executive said in a statement.

READ: SDX says Egypt unit unaffected by covid-19, Morocco “extremely resilient”

Reid added: “South Disouq represents our flagship asset and in the current economic climate this fixed price, low-cost gas development is highly-cash generative for the group.

“The Sobhi discovery has the potential to extend the current South Disouq plateau production of 50 MMscfe/d through to 2023/24 with a low-cost tie in, utilising the existing gas processing plant. We look forwarding to updating the market further following the testing of the well."

The well is expected to be tied-in to South Disouq’s production facilities in 2021, via a connection to the Ibn Yunus-1X location which is 5.8 kilometres away. This will cost around US$3.5mln, the company estimates.

Some 24bn cubic feet of gas was confirmed with the discovery well and the company expects it will need only one more development well to access all this resource – though it notes that such drilling may not be possible for another two to three years.

SDX drilled and funded 100% of the Sobhi well, approximately US$3.7mln. The terms of the joint operating agreement for South Disouq states that a partner can elect to participate after discovery, by paying 45% of the well cost plus a 300% premium.

Quick facts: SDX Energy Inc

Price: 18.5 GBX

AIM:SDX
Market: AIM
Market Cap: £37.87 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of SDX Energy Inc named herein, including the promotion by the Company of SDX Energy Inc in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Morning Report: FTSE 100 on back foot over fears it could take years to find...

Headlines from the Proactive UK newsroom. The FTSE 100 is on the back foot on fears it might take years to find an effective vaccine or treatment against coronavirus. The blue-chip index dropped 70 points to 5,755. Overnight, US firm Gilead Sciences terminated a highly anticipated Chinese...

on 24/4/20

2 min read