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SDX makes 'significantly' larger than expected Moroccan gas discovery
(WebFG News) - North Africa focused oil and gas company SDX Energy has made a conventional natural gas discovery at its LNB-1 exploration well on the Lalla Mimouna permit in Morocco.
The LNB-1 well was drilled to a total depth of 1861 meters at its primary target in the Lafkerena sequence of Mimouna, of which SDX holds a 75% working interest, where 300 meters of gas bearing horizons were encountered in a significantly over-pressured section.
SDX's mudlog obtained through the section revealed elevated gas readings of more than 20% with multiple sections above 50%, however, this section could not be logged using conventional methods due to hole conditions.
The AIM-quoted group noted that gas shows throughout this particular section contained heavier hydrocarbon components, something that had not been in other parts of the basin, indicating that a new petroleum system had been encountered in the area.
Based on the mudlog shows, reservoir quality information from the formation cuttings, analogue fields and the size of the feature as currently mapped, SDX estimated a preliminary recoverable gas volume of 10.2 Bscf of conventional natural gas at an un-risked mid-case with 55 thousand barrels of condensate, something SDX highlighted as being "significantly larger" than the traps typically encountered in the Sebou area.
Meanwhile, at the secondary target, the Upper Dlalha, 2.6 meters of net conventional natural gas pay sands were encountered with an average porosity in the pay section of 33%.
Paul Welch, president and chief executive of SDX, said, "It was a higher risk exploration prospect than previous drilling in Sebou, as it was a sequence that had not been previously penetrated in a similar structural location."
"We had anticipated a higher-pressure section, based upon offset drilling in the area, but the actual pressures encountered, the thickness of the section and the type and amount of shows significantly exceeded our expectations," he added.
As of 0900 BST, shares had gained 3.13% to 59.30p.