SDX Energy completes first drilling phase in Morocco
SDX Energy PLC completed the initial three-well phase of its 2021 drilling campaign in Morocco, which will total up to five wells over the year.
The first well, OYF-3, was spudded on Apr. 30 and reached TD at 1,183 m MD on May 11. The main Guebbas reservoir target was thicker than expected and encountered 5.2 m net gas sand. The well also encountered 1.7 m net gas sand in a secondary zone from which OYF-3 will also produce.
The second well, KSR-17, was spudded on May 13 and reached TD at 1,848 m MD on May 27. The well encountered 5.3 m net gas sand in the main Hoot reservoir, which was slightly thinner than expected but with very good reservoir properties.
Both OYF-3 and KSR-17 have been tested, connected, and are now producing into SDX infrastructure. Post-drill P50 reserves are estimated at a combined gross 0.81 bcf recoverable, in line with predrill estimates.
The third well of the campaign, KSR-18, was spudded on May 30 and reached TD of 1,905 m MD on Jun. 14. Both expected targets were successfully encountered, with the shallower Mid Guebbas target comprising 3.8 m net gas sand and the main Hoot target encountering 13.9 m net gas sand. As expected, the main Hoot had been slightly depleted by production from a nearby well, however the well is still expected to contribute incremental volumes and deliverability from this extensive compartment. A third 5.5 m net gas sand was encountered at Base Guebbas and will contribute to production in the future when Hoot depletes. KSR-18 will be tested in the coming weeks to refine volumetrics but based upon logging results, it is expected that this will also be close to its 0.75 bcf pre-drill P50 EUR estimate.
The second phase of the Moroccan drilling campaign is expected to begin in September-October 2021.
In Egypt, SDX expects to commence the drilling of the IY-2 step out development well at South Disouq and has progressed planning for the HA-1X exploration well with spud expected in third-quarter 2021. This gross 139 bcf prospective target has a 33% chance of success. A four-well campaign in West Gharib is also expected to start soon.
In Morocco, SDX has a 75% working interest in five development-production concessions, all in Gharb basin.
In Egypt, SDX is operator of South Disouq gas field in the Nile Delta (55%) and holds 50% non-operated interest in the West Gharib concession onshore in the Eastern Desert.
