SDX Energy, the North Africa focused oil and gas company, said a gas discovery has been made at its SD-4X well in the South Disouq Concession, Egypt.
The SD-4X well was drilled to a total depth of 7806 feet and encountered 89 feet of net conventional natural gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 24 per cent. The well came in on prognosis with a reservoir section of similar quality but thicker than the original SD-1X discovery well, said the company, which has a 55 per cent working interest and operatorship in the concession.
The well will be completed as a producer in the Abu Madi and then tested after the drilling rig has moved off location. The testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. SDX said assuming a successful test, it is anticipated 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. After completion, the rig will move to the SD-3X well which is the second of two appraisal locations included in the 2018 development program.
“We had anticipated a thickening of the pay section as we moved away from the crest of the structure, and this has now been confirmed,” said Paul Welch, President and CEO of SDX.
“We will now accelerate our development activity in the area. It’s our intent to establish production from both the South Disouq and Ibn Yunus areas before year end 2018. These results demonstrate the significant potential we see in this area.”
Meanwhile, the well test program in the LMS-1 well in the company’s Lalla Mimouna Nord permit in Morocco has been completed. The well, in a test, flowed at sub-commercial rates. SDX said it believes this is temporary due to damage created by the fluids used to control the elevated pressures encountered in the well while drilling.
SDX said the damage is the result of formation clays reacting to certain components used to increase the mud weight of the drilling fluid. The reservoir section, beyond this zone of damage, is thought to be of excellent quality based upon the well log response and is not expected to have been damaged by the drilling fluids. Once the fluid interaction study is complete, a stimulation program will be designed and implemented and the well test will be repeated.
“Overall we are very pleased with our recent drilling activity. In Morocco we had seven successful results from our nine well program and in Egypt we have had three successes out of the four wells drilled to date with one well to go. I am looking forward to updating our shareholders on the well test results of the SD4X, the spud of SD-3X and the progress we are making on our development activity in South Disouq along with our plans to retest the LMS-1 in Morocco in due course,” Welch added.