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SDX Energy boosted by South Disouq reserves upgrade

The Egyptian gas field, which came online in November, is now seen to host 35% more proved and probable reserves.

SDX Energy Inc - SDX Energy boosted by South Disouq reserves upgrade

SDX Energy Plc (LON:SDX) has announced a significant 35% increase in reserves at the South Disouq gas project in Egypt.

The company owns 55% of South Disouq, which came online last year with ‘first gas’ achieved in November.

A new assessment of the field’s reserves by consultant Gaffney, Cline & Associates (GCA) shows gross proved plus probable (2P) reserves increasing to 86bn cubic feet of gas, up from a prior figure of 66bn cubic feet.

The upgrade is the result of new 3D seismic data reprocessing which has provided greater understanding of the reservoir structure and distribution.

READ: SDX Energy’s South Disouq reaches target rate ahead of schedule

SDX noted that gas has been flowing at South Disouq since 7 November and all four of the field’s wells are performing as expected. Production has measured around 50mln cubic feet per day since 10 December, which means the ramp-up is about three months ahead of expectations.

Gas produced from South Disouq is sold to Egyptian national gas company, EGAS, at a fixed price of US$2.85 per thousand cubic feet.

Looking to a new year of operations, SDX chief executive Mark Reid said: “We are now looking forward to the commencement of our South Disouq drilling campaign in February when we will be spudding the first of two wells targeting the same horizons encountered in our four discoveries to date. 

“If successful, these wells have the potential to significantly increase our existing reserves and can be quickly tied into the South Disouq CPF. 

“Depending on partnering discussions, a third well targeting deeper prospectivity in a potential new play fairway, may be drilled later in 2020."

Quick facts: SDX Energy Inc

Price: 14.5 GBX

Market: AIM
Market Cap: £29.68 m

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on 04/08/2019

2 min read