SDX Energy PLC - Commencement of Drilling Operations in Morocco
("SDX" or the "Company")
COMMENCEMENT OF DRILLING OPERATIONS IN
The first seven wells located in the Company's core producing concessions at Sebou and Gharb Centre are lower-risk appraisal wells targeting prospects which are close to existing infrastructure. These wells can be tied in quickly, at low cost, and are similar in geological risk to the discoveries already made and producing in this area.
These seven appraisal wells will be followed by two step-out exploration wells further to the north in Gharb Centre and outside the reach of the Company's existing infrastructure. These two exploration wells are targeting prospects which are similar to the discoveries made in Sebou and Gharb Centre albeit they are deemed higher risk as this part of the concession has not been previously tested. Success here could open up this northern area of the concession for extensive follow-on drilling.
The last three wells of the campaign are expected to be higher-risk exploration wells in the Lalla Mimouna Nord concession, targeting larger prospects in deeper, as yet unproven, horizons.
In order to optimise operations and reduce costs, SDX has secured an advanced North American rig to reduce drilling time. Furthermore, the Company will perforate and test successful wells in separate campaigns, with multiple wells tested back to back in each campaign to reduce equipment mobilisation costs. The drilling campaign is expected to complete in Q1 2020.
SDX will update the market on the progress of the drilling campaign at the earlier of the completion of the first testing campaign, which will cover up to four of the first seven appraisal wells, or the issuance of the Company's planned year end operational update in early
"SDX is pleased to announce the start of its drilling campaign in
Our second objective is to drill two step-out exploration wells to the north of our core production area which, if successful, would open up new, target-rich acreage for future drilling. The final objective of the campaign is to test larger but higher-risk prospects in the Lalla Mimouna Nord concession. To do this, we plan to drill up to three wells, however, if the first well does not meet our expectations, we may move the rig back to our core producing area and complete the campaign by drilling two further lower-risk, but smaller, prospects to add additional reserves. We expect the campaign to complete in Q1 2020 and we look forward to updating the market on progress in due course."
SDX is an international oil and gas exploration, production and development company, headquartered in
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billions of cubic feet
quantities of hydrocarbon estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development
Certain statements contained in this press release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking information. In particular, statements regarding the Company's drilling plans in
The forward-looking information contained in this document is based on certain assumptions and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out planned activities and the availability and cost of labour and services.
All timing given in this announcement, unless stated otherwise is indicative and while the Company endeavours to provide accurate timing to the market, it cautions that, due to the nature of its operations and reliance on third parties, this is subject to change, often at little or no notice. If there is a delay or change to any of the timings indicated in this announcement, the Company shall update the market without delay.
Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, political, social, and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; permitting risks; the ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to refer to SDX's Management's Discussion & Analysis for the three and six months ended
The forward-looking information contained in this press release is as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the included forward‐looking information, except as required by applicable law. The forward‐looking information contained herein is expressly qualified by this cautionary statement.
This announcement does not contain inside information.
Oil and Gas Advisory
Estimates of reserves have been made, assuming the development of each property in which the estimate is made will actually occur, without regard to the likely availability to the Company of funding required for the development of such reserves.
Certain disclosure in this news release constitute "anticipated results" for the purposes of National Instrument 51-101 - Standards for Oil and Gas Activities of the Canadian Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the Company's resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume attributable to the resources of the Company. Such estimates have been prepared by management of the Company and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, including those described above and various geological, technical, operational, engineering, commercial, and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.
The prospective resource estimates disclosed herein have been prepared by an independent qualified reserves evaluator,
There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources, but ranges are defined based on data from the Company's nearby existing analogous wells. Some of the risk and uncertainties are outlined below:
· Petrophysical parameters of the sand/reservoir;
· Fluid composition, especially heavy end hydrocarbons;
· Accurate estimation of reservoir conditions (pressure and temperature);
· Reservoir drive mechanism;
· Potential well deliverability; and
· The thickness and lateral extent of the reservoir section, currently based on 3D seismic data.
This information is provided by RNS, the news service of the
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