Prior to today's update for sell-side and industry analysts, SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, provides the following summary of its recent drilling campaigns at South Disouq (Egypt) and in Morocco. The presentation to be used at today's update can be found on the Company's website at www.sdxenergy.com/investors-presentation.
Egypt - South Disouq Concession (Working Interest 55%)
- Three successful wells out of four drilled so far;
- SD-1X and SD-4X discoveries confirmed prospectivity in the Abu Madi horizon, and the Ibn Yunus-1X discovery identified additional prospectivity in a new play horizon, the Kafr el Sheik;
- Final well, SD-3X, to spud in late June/early July targeting Abu Madi prospectivity close to the SD-1X and SD-4X discoveries. This will complete the current drilling campaign on the concession prior to expected first production at the end of 2018;
- Based on the discoveries and well testing at SD-1X and Ibn Yunus-1X, the Company is targeting a minimum of gross 100 bcf of conventional natural gas and 1 million barrels of condensate with an anticipated plateau production rate of c.55-60 mmscf/d of conventional natural gas and c.500-600 bbls of condensate per day for the first four years;
- Data from all five recent wells will be used to recalibrate the existing 3D seismic interpretation to improve future identification of gas bearing traps in both the Abu Madi and the Kafr el Sheik;
- At present five, drill ready, conventional natural gas prospects targeting > 90bcf (unrisked) have been identified in the Kafr el Sheik and Abu Madi horizons and one, drill ready, oil prospect targeting up to 50mmbbls of conventional light crude oil (unrisked) has been identified in four stacked, individual, deeper Cretaceous targeted STOIIPs ranging from a mean of c.33 mmbbls to 55 mmbbls with chances of success ranging from 22%-29%;
- A further eight gas leads have been identified on the current 3D in the Kafr el Sheik, which are targeting up to 1 tcf (unrisked) of conventional natural gas. Several additional oil leads have also been identified in the deeper Cretaceous reservoirs; and
- Up to 170km2 of 3D is expected to be acquired in Q4 2018 targeting further Abu Madi and Kafr El Sheik prospectivity.
Morocco (75% Working Interest)
- 2017/2018 drilling campaign completed with seven successful wells out of nine drilled;
- The LNB-1 and LMS-1 discoveries have confirmed our views on the prospectivity of the Lalla Mimouna acreage, and opened a sizeable portion of the Rharb Basin to further exploration;
- Currently in the final planning stages of the upcoming 240 km2 Gharb Centre 3D seismic acquisition that will start in early July;
- 12 drill ready gas prospects targeting in excess of 20 bcf (unrisked) of conventional natural gas have been identified across the acreage for a Q1 2019 drilling campaign, to be potentially refined and complemented by the new 3D seismic data; and
- More than 60 further leads have been identified across the Basin, the majority are or will be derisked by our existing or upcoming 3D seismic data coverage, targeting an upside potential of approximately 60 bcf (unrisked) of incremental conventional natural gas prospectivity.
Paul Welch, President and CEO of SDX, commented:
“We are pleased to provide an update on our successful drilling campaigns in South Disouq and Morocco.
We are looking forward to first gas in South Disouq expected at the end of the year and are excited by the new Kafr El Sheik prospectivity that we have identified in the concession. In addition, we have started to review rig options for a 2019 drilling campaign to target the additional gas and oil prospectivity that we have now confirmed exists in up to six separate locations within the concession.
In Morocco, we have identified a significant volume of low risk/high value drilling opportunities which we will be targeting in our next drilling campaign during 2019, as we continue to grow our customer base and meet local gas demand. We expect the upcoming 3D seismic acquisition to further de-risk this prospectivity and we look forward to the commencement of our drilling campaign in the Spring of 2019.”