SDX Energy is actively involved in exploration and development activities in Egypt’s Eastern Desert, Nile Delta and Gulf of Suez basins.
In Egypt, we completed our drilling program at South Disouq, with an 80% success rate, and stand poised to achieve first gas from the concession in mid-2019. At Meseda and North West Gemsa we achieved seven discoveries from seven wells drilled and undertook successful ESP replacement / workover programs in both concessions. We also reduced our trade and other receivables by 36%/US$13.4 million, during the course of the year, allowing us to significantly increase our investment program without requiring any external funding.
- 55% interest and operator
- Located in the Nile Delta north of Cairo.
- 50% interest (non-op)
- The Meseda and Rabul Fields lie in the 45km2 concession situated onshore in the highly prospective West Gharib blocks
G & H, on the west side Gulf of Suez.
North West Gemsa
- 50% interest (non-op)
- This 250km2 concession is located approximately 300Km south east of Cairo in the Eastern Desert.
This increase has continued post-period end, with a further US$7.65 million of trade receivables in Egypt being offset against costs from State contractors used on the South Disouq development project.
During H1 2019, SDX will complete construction of the central processing facility, the 10km export pipeline, and the tie-ins for the above three discoveries and the initial SD-1X discovery well, which was drilled in 2017. First gas is targeted for mid-2019, at a gross plateau production rate of between 50 and 60 MMscf/d, with the conventional natural gas being sold to the Egyptian National Gas Holding Company (“EGAS”) at a price of US$2.85/Mcf.
Prospect inventory for future drilling is expected to increase with the interpretation of the recently acquired 170km2 of 3D seismic in the southern section of the concession. The Company is planning to drill two further exploration wells in 2019, with multiple additional conventional gas prospects and a conventional oil prospect already identified for drilling in future periods.
At South Ramadan (SDX 12.75% working interest and non-operator), the SRM-3 appraisal well was spud on June 14, 2018 and reached a target depth of 15,635 feet. The operator reported encountering 75 feet of net conventional oil pay in the Matulla section (primary target), 20 feet of net conventional oil pay in the Brown Limestone formation, and a further 15 feet of net conventional oil pay in the Sudr section. The Company continues to review technical data from the well result and will provide further updates to the market in due course.