SDX Energy hits gas in Egypt

SDX Energy announced that it successfully flowed gas after drilling at its Sobhi discovery, on the South Disouq exploration permit, in Egypt’s onshore Nile Delta.

From an initial review of the well-test data, SDX said that it is anticipated that when connected, the well will produce at an optimum stabilised rate of 10-12 mmscf/d which is in line with the nearby Ibn Yunus-1X producing well. The Sobhi well is expected to produce mostly dry gas as opposed to gas and condensate.

Mark Reid, CEO of SDX, commented: "We are pleased with these initial well test results which confirms that we have a commercial discovery at the Sobhi well.  This discovery increases our South Disouq 2P reserves by approximately 50 per cent given that we sole risked the well. Furthermore, Sobhi has the potential to extend the current South Disouq plateau production of 50 mmscfe/d through to 2023/24 with a low-cost tie in to our existing gas processing plant. To have a commercial gas discovery of this scale at South Disouq is especially pleasing in the current environment as our low cost, fixed price gas development will continue to be highly cash generative for longer."

SDX stated that the Sobhi well will be subject to a longer rig-less test in the coming weeks which will provide more data to help determine the recoverable volume in the discovery, which at present management estimates to be 24 bcf of recoverable resource.

SDX said that it expects that the Sobhi well will be tied in during 2021 via a 5.8 kilometre tie-in to the Ibn Yunus-1X location where an existing flow-line connects to the South Disouq Central Processing Facility. On a gross basis, the tie-in cost is estimated at US$3.5 million.