26th Mar 2018 15:15
The well, which should take a month to drill, will target the same natural gas bearing Abu Madi intervals discovered at its SD-1X well in April last year, and is the first of a four-well programme at South Disouq.
The following two wells will be appraisal wells, and the final one will be an exploration well.
SDX said its development plan forecast, approved by Egyptian authorities, forecasts a top rate of 50 million cubic feet of gas per day, which could go up to 100 million cubic feet per day with any further discoveries.
Chief Executive Paul Welch said: "I am very excited to be back drilling in the South Disouq concession. The success of the SD-1X well proved the existence of source rock in this area which was our biggest uncertainty pre-drill. The technical work that's been completed by our team after the first successful well has provided us with additional confidence in our ability to identify conventional natural gas bearing intervals within the 3D seismic data set.
"We currently have over 300 kilometres squared of 3D seismic in the block with identified potential of up to 2 trillion cubic feet (gross) of conventional natural gas. Success at Ibn Yunus will de-risk a large portion of that volume which would be very significant for our shareholders."
Shares were trading flat on Monday at
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