SDX has a 75% operated working interest across the Moroccan portfolio, which includes the Sebou Central, Gharb Occidental, Lalla Mimouna Nord, Moulay Bouchta Ouest, and Lalla Mimouna Sud exploration permits, plus a number of exploitation concessions containing the producing wells. Sebou Central and Lalla Mimouna Nord were obtained as part of the Circle acquisition and Gharb Occidental was acquired directly from the Moroccan State in July 2017. SDX was awarded the remaining two permits in February 2019. SDX sells the gas produced by its Moroccan assets to eight customers at contracted prices of between US$10-US$12/Mcf.
The Company’s Moroccan acreage (SDX 75% working interest and operator) consists of five concessions, all of which are located in the Gharb Basin in northern Morocco:
- Sebou
- Lalla Mimouna Nord
- Gharb Centre
- Lalla Mimouna Sud
- Moulay Bouchta Ouest
Lalla Mimouna Sud
- Working interest 75%
- 857 km2 permit, under-explored with strong potential
- Commitment to acquire 3D seismic.
Gharb Occidental (Centre)
- Working interest 75%
- 1343 km2 permit, with over 450 km2 of 3D seismic.
- Proven productive gas region
- P50 prospective resources in excess of 30 bcf unrisked.
Sebou
- Working interest 75%
- 210 km2 permit, of which 134 is covered with 3D seismic.
- Current production hub.
- Attractive remaining prospectivity of 5 bcf unrisked.
Moulay Bouchta Ouest
- Working interest 75%
- 458 km2 permit, underexplored near old depleted oil fields
- Proven shallow gas at various wells
- Commitment to acquire 3D seismic.
SDX executed a successful nine well drilling programme in its Sebou concession late-2017 to mid-2018, which resulted in seven discoveries with an 80% success rate. In Q4 2019 the Company commenced a ten well campaign which completed in Q1 2020. Overall, the Company made seven discoveries of the nine wells drilled, with the tenth well, LMS-2, awaiting testing due to COVID-19 restrictions. Two discoveries, OYF-2 and BMK-1, proved an extension of the Company’s core productive area to the north. SDX estimates a recoverable resource of 2.2-2.8 bcf of gas for these wells, and a de-risked c.20 bcf of P50 prospective resources in the surrounding acreage.
Sebou concession
The Sebou concession, located in the Gharb Basin, was acquired by SDX Energy in May of 2016 and 2D and 3D seismic surveys have been conducted over the majority of the Sebou Concession. 31 wells have been drilled to date, resulting in 25 discoveries (an over 80% success rate). Average production is at 7.0 MMscf /day (1,166 boepd).
SDX also owns a 75% interest in the Kenitra industrial zone pipeline and local gas distribution network, with the concessions production being delivered directly to its customers in this area through the 8” 55km pipeline, that has a capacity of 20 MMscfd.
In Q2 2017, SDX received confirmation of the renewal of the Sebou exploration permit for eight years after committing to drill three exploration wells in the first four years. SDX also received confirmation of extensions to the following producing concessions in Sebou;
- Gueddari NW to 2 February 2019;
- Gueddari Sud to 18 January 2020;
- Sidi Al Harati SW to 20 September 2023; and
- Ksiri Central to 18 January 2025.
Lalla Mimouna Nord
The Lalla Mimouna Nord and Sud permits, located in the Rharb Basin, cover an area of over 2211 km2, of which 154 km2 is covered by 3D seismic. The permit is adjacent to the producing Sebou permit and future discoveries will be tied into the existing gas sales line to the Kenitra industrial zone. The regional basin architecture is well understood from the extensive 2D seismic framework of the area, with prospectivity established in multiple horizons throughout Miocene-aged strata.
Amplitude analysis suggest the presence of several gas-filled sand bodies across the area with a similar response to the Sebou Permit. Five amplitude-supported prospects have been mapped in the 3D seismic area with 13.2 BCF of unrisked recoverable gas. There is considerable potential for material upside discoveries through 3D seismic acquisition with multiple target horizons creating potential for stacked pay.
SDX has also been re-awarded the Lalla Mimouna Sud licence (SDX 75% working interest and operator), which covers an area of 857 km2, for a period of eight years. This permit was part of the original group of concessions that SDX acquired as part of the Circle Oil acquisition in 2017. The concession expired after all the work commitments had been fulfilled and SDX reapplied for the acreage after the acquisition of additional 3D seismic in the area. The Company has a commitment to acquire 50 km2 of 3D seismic and drill one exploration well within the first three-year period. The seismic commitment has been met during the recent Gharb Centre acquisition campaign.
Lalla Mimouna Sud
The Lalla Mimouna Sud exploration concession has been re-awarded to SDX for a period of eight years with a commitment to acquire 50km2 of 3D seismic and drill one exploration well within the first three-year period. The 3D seismic commitment was met as part of the recent Gharb Centre 240km2 3D seismic acquisition program described above.
Gharb Centre
The Gharb Centre exploration permit covers an area of 1,362.1 km2 and contains 5 fields which were discovered on legacy 2D seismic data and are now depleted. The 3D seismic acquired at The Gharb Centre in H2 2018 has now been processed and an initial interpretation completed. The data quality is excellent and multiple leads and prospects have been identified. An inversion of the dataset will now take place after which a ranking and selection exercise will be undertaken to determine which prospects will be chosen for the 2019 drilling campaign. At present, SDX has identified over 20 BCF (unrisked) of gas within the permit.
Moulay Bouchta Quest
The Moulay Bouchta Ouest exploration licence (SDX 75% working interest and operator), covering an area of 458 km2, has been awarded to SDX for a period of eight years. SDX has a commitment to reprocess 150 kilometres of 2D seismic data, acquire 100 km2 of new 3D seismic and drill one exploration well within the first three-and-a-half-year period.
Gross Production Target
By The End of FY 2019
SDX Net:
Of Total Production
Outlook For Morocco
- In Q3 2018, the Company successfully completed the acquisition and processing of a 240km2 3D seismic acquisition program in Gharb Centre and began an initial interpretation in advance of a proposed 12-well drilling campaign to take place between Q3 2019 and Q2 2020.
- During the year, the Company began selling natural gas to the following new customers:Peugeot, Extralait, and GPC Kenitra. In addition, post-period end, natural gas sales to another new customer, Setexam, began and natural gas sales agreements were signed with Citic Dicastal and Omnium Plastic.
- Post-period end, on February 7, 2019, the Company announced the acquisition of the Lalla Mimouna Sud and Moulay Bouchta Ouest concessions from the Government of Morocco.
- The Moulay Bouchta Ouest exploration concession has been awarded to SDX for a period of eight years with a commitment to reprocess 150km of 2D seismic data, acquire 100km2 of new 3D seismic, and drill one exploration well within the first 3.5 year period.