SDX Energy, North Africa-focused producer, said it won an eight-years concession in the Gharb Centre exploration permit, as it looks to expands Moroccan asset base.
London-listed SDX has committed to the acquisition of 200km2 of 3D seismic, and two exploration wells within the first four-year period. The Office national des hydrocarbures et des mines (ONHYM), is SDX’s partners for the project.
The Gharb Centre area, covering over 1362 km2, comes with a considerable quantity of recently acquired 2D and 3D seismic which has established multiple target horizons throughout the Miocene-aged strata, similar to what SDX Energy produces from in its surrounding licenses, the company said in a statement.
"We are very pleased to have expanded our footprint in Morocco with the award of the Gharb Centre exploration permit,” said Paul Welch, CEO of SDX Energy. “Given the amount of 2D and 3D seismic acquisition that has been undertaken in the past, we believe there is clear potential for material upside in this concession that can be easily tied into our existing infrastructure.”
The activity at Gharb Centre complements the company’s programmes at both Sebou and Lalla Mimouna, where development and exploration wells are planned for the second half of 2017.
Predrilling activity is now underway in both permits where the tendering process for drilling rigs and associated services has been initiated. SDX has also received partner approval for seven drilling locations in these permits and is targeting a late third 2017 start date for the program.
The newly acquired acreage connecting the Lalla Mimouna exploration permit with the Sebou producing concession, will enable the company to see the complete basin picture and high grade the opportunity dataset developed, he added.
“Our target is to fulfil the pipeline capacity coming out of the basin, which would entail the quadrupling of production from our current levels. This permit acquisition makes clear strategic sense to SDX, as this acreage brings significant synergies to our expanding asset base in Morocco,” Welch said.