SDX Notches up Another Moroccan Success
North Africa-focused explorer SDX Energy found more gas than it expected to, with its 75%-owned OYF-2 well in Morocco, it said January 28. The commercial discovery at a depth of just over 1,000 metres, also confirms that the company's core productive area extends to the north.
The well will be tested in February but management estimates that it holds recoverable reserves of 1.3bn-1.9bn ft³. The discovery will be tied into infrastructure when required, at an estimated cost of $2mn net to SDX. Furthermore, the discovery has de-risked a further 0.5-1.0bn ft³ of prospective resources, potentially recoverable through a single development well.
The rig has now moved to BMK-1, about 11 km north of OYF-2, where it will test the northern extent of the company's core productive area. In March, further wells will be drilled to complete the campaign in Lalla Mimouna.
SDX CEO Mark Reid said that OYF-2 "is a very positive start, a discovery which is larger than pre drill expectations, and confirmation that our core productive area extends to the north. With the planned follow on development well, we now have the potential to increase our total reserves in Morocco to approximately three to four years of customer demand with our gas being sold under five and ten year fixed priced contracts at an average gas price of circa $11/'000 ft³.
SDX also has a drilling campaign planned for South Disouq and West Gharib in Egypt in the coming few months.