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SDX Energy strikes oil at Egyptian concession
Oil and gas exploration and production company SDX Energy has made an oil discovery at its West Gharib Concession in Egypt, the company said on Wednesday.
The discovery of approximately 151 feet of net heavy oil pay with average porosity of 18% was made at the Rabul 5 well at the site, in which SDX Energy holds a 50% interest and acts as joint operator of.
Paul Welch, president and chief executive of SDX Energy, said: "We are pleased to continue our recent run of drilling success with this oil discovery at Rabul 5. This well encountered the thickest section of pay sands seen in the Rabul area to date, demonstrating the significant oil potential contained within the licence."
Further evaluation of Rabul 5 is ongoing, after which the well will be readied for production and connected to the central processing facilities at Meseda.
The Meseda field, which contains the West Gharib concession, contains 13 currently producing wells with gross production in excess of 3,299 bopd as at 30 June and is operated alongside Dublin International Petroleum who also hold a 50% interest in the site.
"We have further drilling activity planned for the concession over the coming months and we firmly believe that these activities will enable us to increase output from the licence and achieve our ambitious production plans for 2018," said Welch.
SDX Energy plans to move on to drilling an appraisal well at Rabul 4 following the completion of the Rabul 5 well.
As of 0829 GMT, SDX Energy's shares were up 1.80% at 48.10p.