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SDX Energy shares jump after Moroccan gas discovery
Oil and gas developer SDX Energy has made a conventional natural gas discovery in Morocco and spudded a new exploration well in Egypt.
The AIM-traded company said the LMS-1 exploration well on its 75% owned Mimouna permit in Morroco saw the discovery of 16.4 meters of net conventional gas pay sands which had an average porosity of 32% in an over-pressured section.
Paul Welch, president and chief executive of SDX, said: "We are very pleased with the results of this exploration well as it has significantly exceeded our pre-drill estimates for both reservoir quality and pay sand thickness. Similar to the LNB-1 discovery, this was a higher risk exploration prospect into a sequence that had not been previously penetrated in a similar structural location."
The discovery signals the conclusion of SDX Energy's drilling programme at the site which has seen seven successful wells drilled out of nine targeted, leading the company to predict the doubling of overall production in 2018.
Meanwhile, the company has also spudded the Kelvin-1X exploration well at South Disouq, Egypt, a site which it operates and in which it holds a 55% working interest.
The 1X well, which is expected to be completed over a period of 30 days, is the second of a four-well exploration and appraisal campaign at the site and is designed to prove a material upside in the area.
As of 0949 BST, SDX Energy's shares were up 9.80% at 70.00p.