SDX begins drilling at South Disouq concession in Egypt

UK-based oil and gas exploration and production firm SDX Energy has started drilling the SD-6X (Salah) well at the South Disouq concession in Egypt.

SDX owns a 55% interest in the concession.

The SD-6X well will be drilled down to a depth of 9,000ft and is expected to complete in late next month or early April.

It is targeting an estimated 71 billion cubic feet (bcf) of gas. The primary targets of the well are in the Kafr el Sheikh and Abu Madi formations, which already started gas production at four discovery wells in the other areas of the South Disouq concession.

These four wells flow an estimated rate of gas between 8MMscf/d and 15MMscf/d.

Upon completion of Salah, the rig will move to the location of the SD-12X (Sobhi) well, targeting 33bcf in the Kafr el Sheikh formation.

The SD-12X (Sobhi) well will be drilled to a depth of approximately 7,000ft.

SDX will need to build short tie-ins between 5.8km and 8km to the South Disouq central processing facility.

According to the company, the tie-in cost is valued at $2.5m.

SDX noted that it further requires two new wells to fully develop the 71bcf resource at Salah and one additional well to fully develop the 33bcf resource at Sobhi.

SDX CEO Mark Reid said: “Salah and Sobhi are very exciting wells for the company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities.

“We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course.”

In June 2018, SDX Energy made a new gas discovery at the SD-4X well in the South Disouq Concession.