SDX Energy PLC (LON:SDX) told investors it has tapped ‘first gas’ from the South Disouq SD-12X well in Egypt, six weeks ahead of schedule.
The 100% owned well unearthed a commercial discovery in mid-2020 and subsequently came online on December 21, 2020, the company revealed in an update. It is anticipated that SD-12X is host to 24bn cubic feet of recoverable resources and can produce at 10 to 12mln cubic feet per day (presently the rate is reported as 5mln to 7mln).
At the same time, SDX reported group production of 6,400 barrels of oil equivalent (boepd) for the twelve months ended December 31, 2020. That exceeds guidance, which was pitched at 6,000 to 6,250 boepd, and marks a 58% improvement on 2019 with the performance driven by new wells coming online at South Disouq.
SDX, meanwhile, highlighted that in Morocco its customers have returned to pre-COVID-19 gas consumption levels.
Across the group’s core assets, SDX said production has either exceeded or reached the ‘top end’ of guidance.
“We have started 2021 in a very positive position with an exciting programme of nine wells to be drilled in the year and I expect us to build on the successes of 2020 by discovering more resource and continuing our resilient cash generation,” said Mark Reid, SDX chief executive.
The company highlighted a strong cash position with US$9.6mln on the books at the end of December 2020, which leaves it fully funded for planned activities in 2021.
SD-12X is the impetus for further drilling at South Disouq. It intends to drill the Hanut prospect – a 139bn cubic feet target with ‘chance of success’ estimated at 33% - in the second and third quarter. The Ibn Yunus-2 is also on the slate, to accelerate production.
Also planned are three wells at the West Gharib field and, in Morocco, four wells are lined up.