SDX Energy reports positive well test results from South Disouq

North Africa-focussed oil and gas company SDX Energy announced the results of the well test conducted on the SD-1X well on Tuesday, following the recent natural gas discovery at South Disouq, Egypt where the company has a 55% operated working interest.

The AIM-traded firm said the SD-1X well was drilled to a total depth of 7,777 feet, and encountered 82 feet of net pay with an average porosity of 25% in the Abu-Madi section.

Well test operations had now commenced and the well successfully flowed dry natural gas at a stabilised rate of 25.8 MMscf/d on a 48/64" choke, the board reported.

That flow rate exceeded initial expectations and was limited by the surface facilities put in place to test the well.

The well had now been shut-in for an initial build-up, after which a series of additional flowing periods would be conducted and fluid samples taken.

SDX said the results from the well testing program would be integrated into the ongoing reserve evaluation work.

The results of that exercise would then be incorporated into an early development plan proposal for discussion with partners and the authority.

That information would be included in a future release to the market over the summer.

Working with its partners, SDX said it would now aim to bring the discovery into commercial production as soon as possible.

“Underpinned by the strong local gas demand, today's news is highly positive and confirms the overall success of the recent SD-1X campaign,” said president and CEO Paul Welch.

“Not only do we have this excellent result in the upper Abu Madi section, we also remain very upbeat about the oil potential in the deeper Cretaceous horizon, where a working petroleum system was also discovered.”

Welch said that, whilst the work of bringing the gas discovery into production was its primary focus, the company was also planning for further drilling in the lower Cretaceous age horizons where it could see additional potential.

“South Disouq remains, however, one strand in the SDX story.

“Concurrently, we are extremely active across the rest of our North Africa portfolio, which will include development and exploration drilling in Morocco in the next quarter.

“We look forward to providing further updates over the coming months.”