SDX Boosts Egyptian Gas Reserves Estimate

UK-listed SDX Energy has boosted its proven + probable South Disouq gas and condensate reserves by 35%, it said January 7.

SDX, whose working ownership is 55%, said that following analysis of reprocessed 3-D data, the reserves are now 86bn ft³ of natural gas and 600,000 barrels of condensate, or 89bn ft³ gas equivalent, up from 66bn ft³ equivalent 12 months earlier.

Gas has been flowing through the South Disouq central processing facility (CPF) since November 7 with all four production wells and the CPF performing as expected. SDX has been producing at a gross stabilised rate of about 50mn ft³/day since December 10, about three months ahead of expectations, and all of it is sold to the Egyptian national gas company, EGAS, at a fixed price of US$2.85/'000 ft³, with the government's entitlement equating to about 51%.

SDX CEO Mark Reid said the company would start its South Disouq drilling campaign in February, with the spudding the first of two wells targeting the same horizons encountered in the four discoveries to date. "If successful, these wells have the potential to significantly increase our existing reserves and can be quickly tied into the South Disouq CPF. Depending on partnering discussions, a third well targeting deeper prospectivity in a potential new play fairway, may be drilled later in 2020."