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SDX Energy begins drilling at South Disouq in Egypt

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Oilfield Technology,

SDX Energy Plc has announced that the SD-6X (Salah) well at South Disouq in Egypt (SDX 55% working interest) has commenced drilling operations.

Salah is expected to a reach its targeted depth of approximately 9000 ft in late March/early April and is targeting gross P50 unrisked prospective resources of c.71 billion ft3 equivalent, as estimated by management. Salah's primary targets are in the same Kafr el Sheikh and Abu Madi formations that the company's existing four wells are already producing from.

On completion of Salah, the rig will move to the location of the SD-12X (Sobhi) well, approximately 6 km to the west, which is targeting gross P50 unrisked prospective resources of c.33 billion ft3 equivalent, as estimated by management. Sobhi's primary target is also in the Kafr el Sheikh formation at a depth of approximately 7000 ft.

If successful, the Salah and Sobhi wells would require short, 8 km and 5.8 km, tie-ins to the South Disouq Central Processing Facility with SDX's share of the tie-in cost estimated at US$2.5 million and US$1.9 million respectively. The company is reviewing a number of development concepts depending on the size of any discovery that is made. To fully produce the 71 billion ft3 equivalent gross P50 unrisked resource targeted in the Salah well, two further development wells would likely be required. The 33 billion ft3 equivalent gross P50 unrisked resource targeted in the Sobhi well, would potentially only require one further development well.

Mark Reid, CEO of SDX, commented: "Salah and Sohbi 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."

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