leadf
logo-loader
viewSDX Energy Inc

SDX Energy's latest well finds uncommercial gas reservoir

"Whilst the KSS-2 well was not a commercial success, we are viewing this one result in the context of what is already a very successful drilling campaign with four out of six discoveries to date”

oil and gas operations
KSS-2 encountered 8 net metres of high quality reservoir, but gas saturation was too low

SDX Energy Inc (LON:SDX, CVE:SDX) has finished drilling the KSS-2 well at the Sebou project onshore Morocco, though analysis has shown low gas saturation, indicating that the well is not commercial.

KSS-2 encountered 8 net metres of high quality reservoir, on prognosis, but the company believes that the well location has been isolated from the reservoir source rock as it is on the ‘upthrown’ side of a fault.

READ: SDX Energy secures rig for new Egypt well drilling campaign

The next well in the drilling programme, SAH-2, is to be located on the ‘downthrown’ side of the fault and it is targeting a similar structure as seen at KSS-2. The company anticipates a higher probability that SAH-2 will be commercially charged.

KSS-2 was the sixth well in a largely successful nine well campaign onshore Morocco, and SDX told investors that the disappointment is not expected to impact the previously anticipated production growth target for the assets.

"Whilst the KSS-2 well was not a commercial success, we are viewing this one result in the context of what is already a very successful drilling campaign with four out of six discoveries to date,” said Paul Welch, SDX chief executive.

“Using directional drilling equipment for the first time in the basin, we drilled a step out location in order to try to prove up a new concept, and potentially new volumes.”

READ: SDX Energy investors urged not to miss buying opportunity

He added: “Our belief is that this result proves that the main bounding fault provides a good seal and therefore gives us a further confidence in the forthcoming prospects.

“We are looking forward to drilling the final three wells in this programme and reporting on their results in due course."

Quick facts: SDX Energy Inc

Price: 17.5 GBX

AIM:SDX
Market: AIM
Market Cap: £35.94 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of SDX Energy Inc named herein, including the promotion by the Company of SDX Energy Inc in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

SDX Energy sets timeline for TSX delisting and provides update on South Disouq

SDX Energy (CVE:SDX-LON:SDX) President and CEO Paul Welch joined Proactive Investors Steve Darling on Skype to update the timing of their delisting from the Toronto Stock Exchange and solely list on the AIM market in London. Welch also providing Proactive with an update on their South...

on 8/4/19

2 min read