SDX Energy the MENA-focused oil and gas company announced that it has achieved its targeted stabilised plateau production rate of 50 MMscfe/d from its operated South Disouq concession (SDX: 55% working interest) in Egypt approximately three months earlier than initially expected.
Gas has been flowing through the South Disouq Central Processing Facility (“CPF”) since 7 November 2019 with all four discovery wells and the CPF performing as expected.
All gas production is sold to the Egyptian national gas company, EGAS, at a fixed price of US$2.85/Mcf, with the Government of Egypt’s entitlement share of gross production equating to approximately 51%.
Mark Reid, CEO of SDX, commented:
“We are very pleased to announce that we have achieved our stabilised production guidance of 50 MMscfe/d approximately three months ahead of our original target date. The performance to date of the CPF and the four wells has exceeded our expectations and, with the commencement of our South Disouq drilling campaign in Q1 2020, we are looking forward to an exciting period of activity in this concession.”
SDX is an international oil and gas exploration, production and development company, headquartered in London, United Kingdom, with a principal focus on MENA. In Egypt, SDX has a working interest in three producing assets. In the South Disouq gas field in the Nile Delta, the Company is operator and has a 55% working interest. In the Eastern Desert, adjacent to the Gulf of Suez, the Company has two non-operated oil interests; 50% in North West Gemsa and 50% in Meseda. In Morocco, SDX has a 75% working interest in the Sebou concession, situated in the Gharb Basin. These producing gas assets in Morocco are characterised by exceptionally low operating costs and fixed price gas contracts making them particularly resilient in a low oil price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt
The company has an operated 55% equity position after it completed a farm-out of the acreage to IPR in February of 2015 for the remaining 45%.
Subject to partner approval, a drilling campaign of up to five exploration wells is planned to commence at South Disouq in 2020. These wells will target the same Abu Madi and Kafr el Sheik prospective horizons that have seen the Company make four discoveries from the five wells drilled to date.
Headquartered in London, SDX is a North Africa focused, exploration and production company, listed on the AIM market of the London Stock Exchange. SDX has a balanced portfolio of production, development and exploration assets across Egypt and Morocco.
(Source and image: SDX Energy)