The Rabul 5 well was drilled down to 5,280 feet and it encountered some 151 feet of net heavy oil pay, across the Yusr and Bakr formations. The average porosity was said to be 18%.
Following the completion of the well, SDX will move on to drill the Rabul 4 well which will further appraise the oil field.
"We are pleased to continue our recent run of drilling success with this oil discovery at Rabul 5,” said Paul Welch, SDX chief executive.
“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.
“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."
Analyst repeats 'buy' recommendation
“The well has good quality reservoir sands (with porosity of 18%) in the Yusr and Bakr formations, with net pay of 151ft - above pre-drill expectations, and significantly greater than the 101ft of net pay encountered at the Rabul-2 well drilled last year,” said Ashley Kelty, analyst at Cantor Fitzgerald.
“The well will now be completed, and tied in to existing infrastructure at the Meseda Central Processing Facility nearby (5 km). The rig will move on to drill the Rabul-4 well – the second of the two appraisal/development wells planned at Rabul in 2018.”
Kelty added: “This latest successful well in Egypt provides further proof of the low cost upside at Meseda, and we would anticipate that near term production may receive a significant lift once the well is put on production.”
Cantor has a ‘buy’ recommendation for SDX, with a 64p price target that suggests some 30% to the current price.
On Wednesday, SDX shares gained 1.97p or 4.18% to 49.22p.