SDX Energy Inc. and its partner have identified and agreed on target and locations for drilling oil and gas carried exploration well in the South Disouq concession in Egypt, after an initial seismic survey which yielded positive results.
Drilling could start in the first quarter of next year, while permits process has started with a team involved in technical work on the well, SDX said in a statement. Seismic data signaled several high grade prospects in Abu Madi and Kafr El Sheikh areas.
SDX Energy, which operates with a 55 percent interest in the concession, said it has received enquiries from a number of operators for farming-in to the licence. While SDX is unlikely to farm down additional equity, it has agreed to select companies to submit proposals to acquire an interest in the concession, the company said.
The company is also finalizing its technical review of the Meseda facility after, which it will procure equipment necessary to double the treating capacity of the central production facility, enabling it to significantly raise net production from the concession.
"The update on South Disouq marks an important step for the company, as we move out of the analysis phase of our work programme and into drilling phase,” Paul Welch, chief executive of SDX Energy said. “At Meseda, we are excited to have the majority of the technical work completed and look forward to moving into the implementation phase in the near term in order to maximise the field’s full potential.”