SDX Energy hits more gas in Egypt

SDX Energy has found a commercial discovery of gas after drilling at the Sobhi well in the South Disouq exploration permit onshore the Nile Delta, Egypt.

In a statement the firm said: “The well has been drilled to a measured depth of 7,245 feet, encountering 108 feet net of high-quality gas-bearing sands, with an average porosity of 20 per cent, near the base of the Kafr El Sheikh (KES) formation. The top of the KES sand was encountered at a measured depth of 6,506 feet.  Management's best estimate is that the well has encountered approximately 24 bcfe of recoverable gas and condensate resources which is significantly in excess of the minimum commercial volume of approximately 8 bcfe.”

SDX Energy stated that the drilling rig is now completing the well and preparing for testing in the coming weeks. 

Mark Reid, CEO of SDX, commented: "This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis. South Disouq represents our flagship asset and in the current economic climate this fixed price, low cost gas development is highly cash generative for the Group. The Sobhi discovery 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, utilising the existing gas processing plant. We look forwarding to updating the market further following the testing of the well."

SDX Energy 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.

The firm said that the discovered 24 bcfe of gross recoverable gas and condensate resources will potentially only require one further development well to be drilled, albeit this will not be necessary for another 2-3 years. 

SDX drilled the Sobhi well at a 100 per cent working interest and the total cost of the well, including the cost to complete, is estimated at US$3.7 million.