SDX Energy makes new oil discovery at Egyptian asset

SDX drilled the well to a total depth of 5,250 feet and encountered approximately 43 feet of net heavy oil pay across the Yusr and Bakr formations, with an average porosity of 16%.

The AIM-quoted group highlighted that after ongoing evaluation of the asset was complete, the well was expected to be completed as a producer and connected to its central processing facilities at Meseda.

Paul Welch, president and chief executive of SDX, said, "The four successful wells drilled to date in the Rabul structure will contribute significantly to our production volumes in 2018. The Rabul 5 well was recently put on production, using an ESP completion, and came on at just over 2,000 barrels of oil per day from the Bakr sand."

"The development activity in the Rabul area has been both rapid and successful for SDX and our partners and we are now looking forward to drilling the two development locations in Meseda which we believe will also be significant contributors to our production growth in 2018," he added.

SDX holds a 50% working interest in the West Gharib concession as its joint operator.

As of 1020 BST, shares had picked up 1.82% to 67.30p.