Oil & Gas

SDX Energy’s shares up 14% after finding gas during drilling campaign in Egypt

Egypt news

North Africa focussed oil and gas firm SDX Energy’s stock was up 14% after discovering gas in an Egyptian well.

The company has announced that its SD-1X well at the South Disouq concession, where it holds a 55% equity interest, has reached the target depth.

The well is targeting gas in the upper Abu-Madi section, and oil from the deeper Abu Roash and AEB horizon.

To date the well has been drilled to a total depth of 7,777 ft. reaching its first target depth in the Abu Madi.

During drilling, conventional natural gas bearing horizons were encountered in the Abu Madi.

The well encountered 65 ft. of net pay section with an average porosity of 25%.

The results are in line with pre-drill estimates. Additional evaluation work is currently underway to provide an accurate recoverable volume estimate which will be the subject of a subsequent release.

Drilling will now continue to the deeper Abu Roash and AEB sections, targeting oil.

Paul Welch, President and chief executive of SDX, said: “It is clearly very encouraging to have made a gas discovery at the first of SD-1X’s target intervals.

“The 3D seismic data acquired and interpreted over the South Disouq concession has provided a very accurate view of the subsurface as the target interval has come in on prognosis.

“This provides us with additional encouragement for the deeper horizons where we are targeting oil.

“Any production testing of the Abu Madi or one of the deeper horizons will be undertaken after drilling operations have been completed and the rig has moved off location.”

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