Egypt focussed SDX Energy Inc (LON:SDX, CVE:SDX) told investors that the quality of new 3D seismic data, covering 300 square kilometres of the South Disouq concession, has surpassed expectations and is allowing the group to see additional exploration targets.
Initial interpretation has identified numerous leads and prospects in multiple plays. It sees potential in the Abu Madi and Kafr El Sheikh gas and condensate formations, as well as the deeper Abu Roash and AEB horizons which are believed to contain oil.
The company noted that the South Disouq exploration area benefits from having prospects in both primary targets normally found in the Nile Delta, and also older horizons that are productive across the Western Desert.
SDX is now building a prospect inventory and is looking at possible locations for new drilling, the company added. Its participation in an exploration well would be fully carried.
So far it sees fifteen leads, of which two are already deemed ‘drillable’. Further analysis and interpretation will continue ahead of the drill programme, slated to start in late 2016 or early 2017.
Paul Welch, SDX chief executive, said the company was very pleased with the data quality.
“Our ability to identify and map prospectivity at the Abu Madi and deeper Abu Roash and AEB horizons greatly expands the potential of the concession.
“We are developing an excellent prospect inventory within the concession and are excited by the potential of the forthcoming drilling campaign to test for not only the established gas potential in the area but also for oil.
“Identifying these Western Desert producing horizons within the oil window in South Disouq is fantastic news.”