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SDX Energy “very pleased” with successful production test result at SD-4X

SDX Energy boss, Paul Welch, said this latest production test result gives him confidence in delivering 50MMscfd of natural gas from South Disouq

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SDX has a 55% working interest at South Disouq, where it also the operator

The recent production test at SDX Energy Inc’s (LON:SDX CVE:SDX) SD-4X appraisal well South Disouq in Egypt was successful, the North Africa-focused oil and gas explorer has confirmed.

The well flowed at a maximum rate of 30.4mln standard cubic feet per day (MMscfd) during an eight-hour cleanup period and was then shut in for a further eight hours, during which time no pressure decline was observed.

Following this, by varying choke sizes the well flowed for two successive 12-hour periods at average rates of 5.4 MMscfd, 8.6 MMscfd respectively and one extended flow period of 24-hours at an average rate of 10.5 MMscfd.

WATCH: SDX 'looking good' after successful operations in Egypt and Morocco

The SD-4X well was subsequently shut in for a pressure build-up of 120 hours, which is currently on-going.

At the end of the build-up, the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production facilities.

During the production testing, a total of 23.38 MMscf of conventional natural gas was produced from SD-4X.

“We are very pleased to report another successful production test result, at our SD-4X appraisal well in South Disouq,” said president and chief executive Paul Welch.

“We intend to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months.

He added: “We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50 MMscfd of conventional natural gas.”

SDX made the SD-1X discovery just over a year ago and is using data from this and the other appraisal well, SD-3X, to further its understanding of the extent and size of the hydrocarbon accumulation there.

The company has a 55% working interest in South Disouq where it is also the operator.

3D seismic data collection kicks off in Morocco

In the same announcement, SDX confirmed it has started collecting 240km2 of 3D seismic data in the Gharb Centre in Morocco.

That is expected to take between 45 and 60 days to complete, after which the data will be processed and interpreted during the fourth quarter of this year.

“The commencement of our 3D seismic programme in the Gharb Centre, Morocco also shows further operational progress across the portfolio,” said Welch.

“The survey will be the largest and highest resolution 3D seismic dataset in the Gharb basin to date and we remain very optimistic on the results and its ability to deliver additional exploration prospects for our next drilling campaign in Morocco.”

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