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SDX Energy kicks off two-well drill campaign to further tap potential of Egyptian gas asset

The first is a development well, the second is an exploration opportunity

SDX Energy PLC -

SDX Energy PLC (LON:SDX) on Monday (June 28) kicked off a two-well drilling campaign on its South Disouq gas asset in Egypt.

The first well, IY-2, is a step-out development opportunity targeting the high-porosity and permeability Basal Kafr El Sheikh reservoir at 6,600 feet in the Ibn Yunus Field.

It will take around a month to complete with results expected late “July-early August”. The plan then is to tie it into nearby infrastructure, with production expected late in the third quarter.

The second well, the HA-1X, is an exploration opportunity with work getting underway in early August, shortly after the completion of IY-2.

It is targeting gross un-risked mean recoverable volumes of 139bn cubic feet (BCF) of gas with a 33% chance of success.

It is also expected to take around a month to drill with results expected in mid-September.

SDX chief executive Mark Reid said: "After our previous highly successful campaigns at South Disouq, where we have achieved five discoveries from seven wells drilled, I am excited to announce the commencement of our next phase of drilling.”

The company has a 55% working interest in South Disouq and is the operator of the acreage.

The shares opened 2.7% higher at 16p. Broker Peel Hunt, which reckons the stock is worth 35p, said: "We look forward to a catalyst-rich Q3."

---Adds share price and broker comment----

 

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