SDX Energy spuds exploration well at Morocco concession

SDX Energy announced the 6 August spudding of the SAK-1 exploration well on Thursday, at the Lalla Mimouna Sud concession in Morocco, where it has a 75% working interest.

The AIM-traded company said SAK-1 was targeting the Guebbas Formation reservoir at around 1,108 metres measured depth.

It said the well would also complete the remaining commitment on the Lalla Mimouna Sud Concession.

SAK-1 is the first of a fully-funded, two-well campaign on the SDX Gharb Basin acreage planned for the third quarter, with up to a further three wells being considered for acceleration into the fourth quarter of 2022 or the first quarter of 2023, depending on the results of the third quarter campaign and customer demand.

“The objective of this well is to add reserves to allow us to continue supplying gas to our customers in line with their contractual requirements,” said chief executive officer Mark Reid.

“Success at SAK-1 would also open a new exploration area for us to the west of our existing production hub, with several follow-up prospects already having been identified.”

At 1417 BST, shares in SDX Energy were down 0.51% at 9.7p.

Reporting by Josh White at Sharecast.com.