SDX Energy extends Moroccan permits

North Africa-focussed oil and gas company SDX Energy updated the market on its Moroccan activities on Tuesday, reporting that the Lalla Mimouna Nord and Sud permits, covering an area of more than 2211 square kilometres in the Rharb Basin, were being extended until March 2018.

The AIM-traded firm said the drilling campaign there remained on schedule for two exploration wells in the second half of 2017.

At Sebou - a 135 square kilometre concession located in the Rharb Basin- extensions had been granted for a number producing concessions.

Those included Gueddari NW, to 2 February 2019; Gueddari Sud, to 18 January 2020; Sidi Al Harati SW, to 20 September 2023; and Ksiri Central, to 18 January 2025.

The Sebou exploration permit was being renewed for eight years, with SDX committing to drilling three exploration wells within the first four-year period.

SDX said it planned to drill two of the exploration wells towards that commitment in 2017, in addition to the three wells slated to be drilled in the Ksiri producing concession later in the year.

The board said those planned wells were all close to existing infrastructure and could be put on production quickly.

SDX said that the process of granting the awards and concession extensions named remained subject to the final standard customary approvals by the Moroccan authorities.

That is the normal administrative procedure in the country, its board added.

“2017 has already proven to be an extremely active time for SDX, as we focus on developing our assets across the portfolio, in both Morocco and Egypt,” said CEO Paul Welch.

“We are encouraged by the opportunity set that we have acquired and subsequently developed in Morocco.”

Welch said the extensions in Sebou would allow SDX to execute on a drilling campaign that would provide additional production capacity and reserves, if successful.

“The Lalla Mimouna and Sebou concessions in Morocco provide us with the potential to further grow the business as we seek to get the most out of the opportunity that exists in Morocco's local gas market.

“The remainder of the year is set to be a period of high activity in Morocco, with a total of seven wells to be drilled.

“This will continue to build on the solid progress made to date for SDX in delivering high margin growth across the portfolio.”