18th Sep 2019 14:29
(Alliance News) - SDX Energy PLC on Wednesday announced the discovery of commercial oil at the West Gharib concession in Egypt.
Drilling at the MSD-19 development well, in which it has 50% stake and jointly operates, found 135 feet of net heavy oil pay in the Asl formation, with an average porosity of 24%.
SDX completed the 4,665 feet well as a producer, connected to processing facilities at Meseda. It has produced 315 barrels of oil a day over five days, SDX said.
Interim Chief Executive Mark Reid said: "We are pleased to announce a further drilling success with our MSD-19 well in the West Gharib concession, which follows the positive result in the Rabul-7 well in June. The well was brought online in a timely and cost efficient manner and will provide further support to our 2019 production guidance for this asset of gross 4,000 barrels to 4,200 barrels per day.
"Further development wells are planned for the concession in the next 18 months, with the final location of these wells being dependent on government approvals. A further update on future drilling will be provided to the market in due course."
The Rabul-7 well found 134 feet of net heavy oil pay across the Yusr and Bakr formations, at a porosity of 18%.
SDX shares were 2.3% higher on Wednesday afternoon in London at 22.50 pence each.
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