SDX Energy PLC - Update on drilling operations in Morocco and Egypt
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Update on drilling operations in
· Play-opening BMK-1 well in
· Expected to significantly extend reserve life and support lower CO2 emissions at our customers.
· Rig now moves to Lalla Mimouna concession to drill potentially play-opening LMS-2 well.
· SD-6X in
· SD-12X in
The BMK-1 well in
Following the OYF-2 discovery which was announced on
Using Measurement While Drilling ('MWD') tools, management estimates that BMK-1 encountered a total of approximately 0.9 bcf of gas in the Upper and Lower Guebbas targets, in line with pre-drill estimates. However, due to down-hole issues, only the Upper target was wireline logged and will be completed. Management estimate that the Upper target has approximately 0.4 bcf of recoverable gas and that the gas in the Lower target will be recoverable during the development of the new play fairway de-risked by the OYF-2 and BMK-1 wells.
The rig will now move to the Lalla Mimouna concession to drill the potentially play-opening LMS-2 well. With the drilling of this tenth well, the Company will have fulfilled the three objectives of the campaign which were; (i) to add reserves in and around its existing infrastructure; (ii) to determine if its existing producing area extends to the north; and (iii) to test the prospectivity within the Lalla Mimouna concession. Furthermore, given that the last two planned wells would not have been immediately tied into the Company's infrastructure or contributed cash flows in the near term, the Company has decided to preserve its capital and postpone these last two wells, at no incremental cost, for a future campaign. Given all of this, the campaign will conclude after LMS-2.
South Disouq (SDX Working Interest 55% and operator)
The SD-6X (Salah) exploration well at South Disouq,
The rig will now move to the site of the next drilling location on the South Disouq licence, the SD-12X (Sobhi) exploration well, which is to the north and structurally updip of the Ibn Yunus discovery and the SD-6X well.
The result of SD-6X is not anticipated to have any technical read across to SD-12X which is targeting a management estimate of 33 bcfe and which is expected to spud in the next two to three weeks.
"The BMK-1 result in
After the SD-6X well in
SDX is an international oil and gas exploration, production and development company, headquartered in
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For further information:
Chief Executive Officer
Tel: +44 203 219 5640
Tel: +44 (0) 20 7710 7600
Tel: +44 207 7894 7000
Tel: +44 207 418 8900
Billy Clegg/Owen Roberts/Violet Wilson
Tel: +44 203 757 4980
billion cubic feet
billion cubic feet equivalent
million cubic feet
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 future drilling campaigns and results in Morocco and at South Disouq in Egypt including estimates of recoverable gas and plans to drill at LMS-2 and SD-12X, the preservation of the Company's capital, the extension of reserve life, the sufficiency of reserves to fulfill existing customer contracts and impact on customer CO2 emissions, should all be regarded as forward-looking information.
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 nine 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.
Oil and Gas Advisory
Certain disclosures in this news release including disclosures in the map titled "New Play Fairway covered by existing 3D and de-risked by OYF-2 and BMK-1" that is incorporated herein constitute "anticipated results" for the purposes of National Instrument 51-101 - Standards of Disclosure 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 and production rates attributable to the resources of the Company. Such estimates have been prepared by Company management 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 or referenced herein or contained in the map titled "New Play Fairway de-risked by OYF-2 and BMK-1" that is incorporated herein have been prepared by Dr. Rob Cook, a qualified reserves evaluator, in accordance with the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The prospective resources estimates disclosed herein have an effective date of
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 risks 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.
"P50" means that there is at least a 50% probability that the quantities actually recovered will equal or exceed the best estimate.
This information is provided by RNS, the news service of the
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