SDX Energy upbeat on latest developments at Sebou
SDX Energy Inc. (DI)
2.05p
16:55 27/09/24
North Africa-focussed oil and gas company SDX Energy updated the market on its KSR-14 and KSR-15 development wells on the Sebou permit in Morocco, in which it has a 75% working interest, on Monday.
FTSE AIM All-Share
745.65
17:14 27/09/24
The AIM-traded firm said KSR-14 and KSR-15 are the first two wells of a nine well drilling programme on its Sebou, Gharb Centre and Lalla Mimouna permits in Morocco.
Further to its update on 13 November, the board said the KSR-14 well had now been tested and recorded an average flow rate conventional natural gas into the sales line of 6.4MMscfd.
The well would remain on production for an extended period prior to being shut-in for a pressure build-up as part of the year-end reserve estimate process.
At the KSR-15 development well, SDX said the completion equipment had been run, and connection to the nearby infrastructure was now underway.
Completion of the well was expected to occur within three weeks of rig departure with flow testing targeted for early December.
The rig move to the next location, KSR-16, had now commenced.
On the Gharb Centre exploration permit, the seismic tender for 240 square kilometres of new 3D seismic was complete, and the contract awarded to CGG.
SDX said the seismic acquisition was expected to commence at the end of the second quarter of 2018.
“This is further positive news flow from our active Moroccan drilling campaign,” said president and CEO Paul Welch.
“In particular, the KSR-14 test results are ahead of our internal expectations, especially in light of the fact that we are only flowing from the Hoot sand, as opposed to both the Hoot and Guebbas.”
Despite that, Welch said the well still managed to produce at a rate that would allow it to meet the company’s entire daily sales commitment by itself.
“This increases our confidence that we can reliably increase our production rates to meet additional customer demands based upon the results of the current program as we target an increase in our sales volumes by 50% in 2018.
“Overall, we are moving forward with the campaign apace and are pleased with the progress to date.”