SDX Energy Discovers Natural Gas in Egypt

SDX Energy (TSXV:SDX,LSE:SDX) the North Africa focused oil and gas company, reports that a gas discovery has been made at its SD-3X well in the South Disouq Concession, Egypt.

SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa.

As quoted from the press release:

The SD-3X well was drilled to a total depth of 7,842 feet and encountered 32.6 feet of net conventional natural gas pay in the Abu Madi and Kafr el Sheik horizons, with an average porosity in the pay sections of 21.7 percent.

The SD-3X well will now be completed as a producer in the Abu Madi horizon and then tested after the drilling rig has moved off location. In order to optimise the potential recovery from the SD-3X well, the Abu Madi horizon will be completed and produced initially before re-entering the well to complete and produce the Kafr el Sheik horizon. The Abu Madi testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. Assuming a successful test in the Abu Madi, it is anticipated that the well will be connected to the infrastructure located adjacent to the original SD-1X discovery, where production start-up is anticipated late in the 4th quarter of 2018.

Paul Welch, president and CEO of SDX, commented:
“The discovery of gas in both the Abu Madi and Kafr el Sheik horizons is a very positive outcome for the SD3X well. As demonstrated by the Ibn Yunus discovery earlier this year, the Kafr el Sheik horizon is an excellent quality productive sequence. The SD-3X discovery has confirmed that this horizon is extensively present throughout the concession.”

Click here to read the full press release