SDX Energy owns 55% working interest in the South Disouq Concession located in Egypt
UK-based exploration and production company SDX Energy has reported new gas discovery at SD-12X (Sobhi) well in the South Disouq Concession, Egypt.
Located in the South Disouq Exploration Permit onshore Nile Delta, the SD-12X well has encountered 108ft of net high-quality gas bearing sands.
The company, which owns a 55% working interest (WI) in the South Disouq Concession, confirmed around 24 billion cubic feet (bcf) of gas with the discovery. IPR owns the remaining 45% interest in the concession.
SDX said the resources would require only one development well to be drilled and that such drilling may not be possible for up to three years.
SD-12X to be tied-in to South Disouq’s production facilities
The SD-12X well is planned to be tied-in to South Disouq’s production facilities in 2021 via a connection to the Ibn Yunus-1X location 5.8km away.
SDX Energy CEO Mark Reid said: “This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis.
“South Disouq represents our flagship asset and in the current economic climate this fixed price, low cost gas development is highly cash generative for the group.
“The Sobhi discovery has the potential to extend the current South Disouq plateau production of 50 MMscfe/d through to 2023/24 with a low-cost tie in, utilising the existing gas processing plant. We look forwarding to updating the market further following the testing of the well.”
In February 2020, SDX Energy said it has commenced drilling operations at the SD-6X (Salah) well at South Disouq concession.
SDX stated it would require two new wells to fully develop the 71bcf resource at Salah and one additional well to fully develop the 33bcf resource at Sobhi well.