SDX Energy plc revealed Wednesday that it has made a commercial discovery at its 100 percent owned Sobhi well in Egypt.
The well, which was drilled to a measured depth of 7,245 feet, encountered 108 feet net of high-quality gas-bearing sands, according to SDX. The company said its best estimate is that the well has encountered approximately 24 billion cubic feet equivalent (bcfe) of recoverable gas and condensate resources, which it said is “significantly” in excess of the minimum commercial volume.
SDX outlined that Sobhi’s drilling rig is now completing the well and preparing for testing “in the coming weeks”. The company said it expects the well will be tied in to the Yunus-1X location, where an existing flowline connects to the South Disouq Central Processing Facility, in 2021.
“This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis,” SDX CEO Mark Reid said in a company statement.
“The Sobhi discovery has the potential to extend the current South Disouq plateau production of 50 MMscfepd through to 2023/24 with a low-cost tie in, utilizing the existing gas processing plant. We look forwarding to updating the market further following the testing of the well,” he added.
SDX describes itself as an international oil and gas exploration, production and development company. The business, which is headquartered in London, has a principal focus on the Middle East and North Africa.
Earlier this week, Reid stated in the company’s latest financial and operating results statement that SDX is in an “extremely robust position to face the challenges ahead”.
“With our fixed priced gas weighting and our healthy liquidity position, we remain committed to realizing value for our shareholders by capitalizing on a strong year and growing the company further in 2020,” Reid added.
To contact the author, email andreas.exarheas@rigzone.com
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