SDX Energy Inc., the North Africa focused oil and gas company, said it discovered gas at its SD-3X well in the South Disouq Concession, Egypt.
The SD-3X well was drilled to a total depth of 7,842 feet and encountered 32.6 feet of net conventional natural gas pay in the Abu Madi and Kafr el Sheik horizons, with an average porosity in the pay sections of 21.7 per cent, SDX said in a statement.
SDX, which has a 55 per cent working interest and operatorship, said the SD-3X well will now be completed as a producer in the Abu Madi horizon and then tested after the drilling rig has moved off location.
In order to optimise the potential recovery from the SD-3X well, the Abu Madi horizon will be completed and produced initially before re-entering the well to complete and produce the Kafr el Sheik horizon, the company said.
The Abu Madi testing is anticipated to start between 30 and 45 days after the rig departs, depending on the availability of testing equipment.
Assuming a successful test in the Abu Madi, SDX anticipates that the well will be connected to the infrastructure located adjacent to the original SD-1X discovery, where production start-up is anticipated late in the fourth quarter of 2018.
Paul Welch, President and CEO of SDX said: “The discovery of gas in both the Abu Madi and Kafr el Sheik horizons is a very positive outcome for the SD3X well. As demonstrated by the Ibn Yunus discovery earlier this year, the Kafr el Sheik horizon is an excellent quality productive sequence. The SD-3X discovery has confirmed that this horizon is extensively present throughout the concession.”
Welch said the company will now analyse the data from all four wells drilled in the South Disouq campaign, as well as reprocessing and inverting the existing 3D seismic data on the concession.
Upon interpretation of the data, and completion of the new 3D survey later this year, he expects to identify further Abu Madi and Kafr el Sheik prospects for drilling in 2019 and 2020.
“With our drilling activities completed, we will now focus on the completion of the South Disouq processing facility and pipeline infrastructure with a view to achieving first production by the end of 2018,” Welch added.