The first two wells in the campaign, MSD-21 and MSD-25, have been tied-in and are contributing to production
SDX Energy spuds MSD-20 well at West Gharib concession, Egypt. (Credit: Terry McGraw from Pixabay)
SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is pleased to announce the spudding of the MSD-20 infill development well on the Meseda field. This well is the third in a fully funded 13-well development drilling campaign on the Meseda and Rabul oil fields in the West Gharib concession in the Egyptian Eastern Desert. The campaign is aimed at growing production to c.3,500 – 4,000bbl/d by early 2023.
The MSD-20 infill development well on the Meseda Field (SDX: 50% working interest) spud on 5 April 2022 and is targeting the Asl Formation reservoir at approximately 3,180ft TVDSS. It is estimated that the well will take around six weeks to drill, complete and tie-in to the existing infrastructure. MSD-20, with an expected cost to drill and tie in of US$0.9-US$1.0 million (gross), is anticipated to come on-line and produce at around 300bbl/d (gross), which would immediately contribute to Group cashflow and result in a payback period of five to six months at current oil prices. The Company expects to update the market on its result in mid-May.
The first two wells in the campaign, MSD-21 and MSD-25, have been tied-in and are contributing to production.
Mark Reid, CEO of SDX, commented:
“I am pleased that we have spud MSD-20, the third well in the campaign, so quickly after bringing MSD-21 and MSD-25 onto production, which is testament to the efficiency of the operations team in country and bodes well for the rest of the campaign. West Gharib is a very high margin asset in our portfolio with a Netback of US$37/bbl at US$71/bbl Brent in FY2021. Given this, it is our intention to execute this 13-well campaign as quickly as possible to significantly boost production and cashflow from these fields. In line with this aim, a second rig has been contracted and is currently on location at the next well, MSD-24, which should be operating soon. I look forward to updating the market further as the campaign progresses.”
Source: Company Press Release