SDX Energy spuds Hanut-1 exploration well

Middle East and North Africa-focussed SDX Energy announced the spudding of the Hanut-1 exploration well, ‘HA-1X’, which is the second well in its 2021 two-well drilling campaign in South Disouq, following the successful IY-2 well announced in July.

The AIM-traded firm said the HA-1X exploration well on the Hanut prospect spudded on 4 August, and was targeting a Basal Kafr El Sheikh prospect at around 5,200 feet true vertical depth minus sea level (TVDSS).

It said the Hanut prospect was estimated to contain a gross unrisked mean recoverable volume of 139 billion cubic feet of gas, or 23.2 million barrels of oil equivalent, with a 33% chance of success.

SDX has a 55% working interest in the well, and its audited working interest 2P reserves as at 31 December equated to 11.1 million barrels of oil equivalent.

The well was expected to take about one month to drill.

“After our previous successful campaigns at South Disouq where we have achieved six discoveries from eight wells drilled, most recently at IY-2, I am excited to announce the spudding of the potentially transformational HA-1X exploration well on our Hanut prospect,” said chief executive officer Mark Reid.

“With gross unrisked mean prospective resources of 139 billion cubic feet, it is significantly larger than previous prospects and has the potential to materially increase the reserves of the company if successful.

“We look forward to updating the market further as the well progresses.”

At 1048 BST, shares in SDX energy were down 1.42% at 14.54p.