SDX made a gas discovery with the Ibn Yunus-1X well on its South Disouq licence. The well is planned to be tied into nearby infrastructure being constructed to commercialise the original gas on the block (SD-1X). First gas on the licence, which will now be from both wells, is targeted for H2 2018.
SDX has a 55% operated stake in the licence, having farmed out 45% to IPR in February 2015. SDX made the SD-1X discovery in 2017 which tested successfully and now being developed through an Early Production System. The gas price is understood to be under negotiation which could be above the country’s historical domestic price of USD2.65/mmbtu.
Further exploration on the licence is now planned targeting the estimated 1.3tcf of resource potential (P10).
Press announcement
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce
that a gas discovery has been made at its Ibn Yunus-1X exploration well at South Disouq, Egypt (SDX 55%
working interest and operator).
The Ibn Yunus-1X well was drilled to a total depth of 9068 feet and encountered 100.8 feet of net
conventional natural gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 28.5%. The well came in on prognosis but with a reservoir section that was of better quality and thicker than pre-drill expectations.
The well will be completed as a producer in the Abu Madi section and then tested after the drilling rig has moved off location. The testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. After a successful test, it is anticipated that the well will be connected to the infrastructure located adjacent to the original SDX discovery in the basin, SD-1X, where production start-up is anticipated in the second half of 2018.
Paul Welch, President and CEO of SDX, commented:
“We are extremely encouraged with today’s discovery, our second consecutive discovery at South Disouq.
This highly positive drilling result further demonstrates the very significant natural gas potential the
licence holds. Combined, these two successful wells confirm our views of the subsurface geology and
demonstrate that we are on course to realise the full potential of the licence. We look forward to updating shareholders on future developments at South Disouq in due course.”
