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SDX Energy adds second discovery at South Disouq as field near first production

Published: 02:13 12 Apr 2018 EDT

oil and gas operations
South Disouq is due to start producing in the coming months

SDX Energy Inc (LON:SDX) confirmed its latest well success, with the Ibn Yunus-1X well at the South Disouq project unearthing a larger than expected gas reservoir.

The company told investors that the well encountered 100.8 feet of natural gas pay in the Abu Madi horizon and the average porosity was measured at 28.5%.

It highlighted that the well has come in on prognosis, but, the reservoir section was thicker and better quality than anticipated before drilling.

WATCH: SDX Energy's latest Egypt well 'going gangbusters' - CEO Paul Welch

A production test will now take place, starting 30-45 days after the drill rig is removed, and it is expected that the Ibn Yunus-1X well will be subsequently hooked up to nearby production facilities, adjacent to the original South Disouq gas discovery well.

The SD-1X well is due to start production from South Disouq in the second half of this year.

"We are extremely encouraged with today's discovery, our second consecutive discovery at South Disouq,” said Paul Welch, SDX chief executive.

“This highly positive drilling result further demonstrates the very significant natural gas potential the licence holds. 

“Combined, these two successful wells confirm our views of the subsurface geology and demonstrate that we are on course to realise the full potential of the licence. 

“We look forward to updating shareholders on future developments at South Disouq in due course."

SDX’s development plan for South Disouq sees a plateau rate from the SD-1X field of 50 million standard cubic feet per day, though with further exploration success, the rate could potentially double, up to 100 MMscf/d.

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