SDX launches Moroccan drilling campaign
AIM-listed explorer SDX Energy began drilling the first well in phase 1 of its Moroccan campaign after a one-month delay late April, it said May 4. CEO Mark Reid said two more are planned in this first phase.
The objective of these wells is to add reserves to allow it to continue to deliver gas to its customers in line with their contractual requirements, it said.
The first phase of the Morocco drilling campaign will target a total of 1.3bn ft³ of P90 or 1.8bn ft³ of P50 gross unrisked prospective recoverable resources near SDX's existing infrastructure for relatively quick and low-cost tie-ins. SDX has 75% stake in the licence. It will use the drilling rig that is already stacked in its yard in Morocco.
The campaign is expected to complete in July 2021, at which point it will update the market. The second phase is expected to start in September.
Travel restrictions held back the arrival of equipment and personnel, but SDX thanked the petroleum ministry for "providing invaluable assistance in enabling us to obtain the necessary government authorisations to mobilise the equipment and people into the country to commence the campaign last week."
SDX's Egyptian drilling activities are expected to start in June, with the first of four development wells in West Gharib and the start of its two-well campaign in South Disouq. The second well, the Hanut-1X exploration well planned for mid-Q3, will be targeting gross unrisked mean recoverable volumes of 139bcf with a 33% chance of success, Reid said.