SDX Energy Inc., the North Africa focused oil and gas company, said its Kelvin-1X exploration well at South Disouq, Egypt will be plugged and abandoned after hitting noncommercial levels of gas-saturated sands.
The well was drilled to a total depth of 8075 feet, encountering 606 net feet of high quality reservoir interval in the Abu‐Madi formation with an average porosity of 21 per cent, SDX said, but added that the sands had low gas saturation and were not deemed to be commercial.
After the well is plugged and abandoned, the rig will move to the site of the next drilling location on the South Disouq licence, the SD-4X appraisal well, the company said.
Following the April 2017 SD-1X discovery on South Disouq, SDX targeted two near-field prospects, Ibn Yunus, where the company has recently announced a significant discovery, and Kelvin. The Kelvin-1X well was located structurally updip of the SD-1X discovery.
The company said it had expected it to potentially be connected to the original SD-1X structure by a continuous gas bearing section but the identified layer appears to be separated from the original discovery and contains gas with non-commercial saturations.
The company is now focused on completing the development at SD-1X and bringing both discoveries on stream as quickly as possible, with first gas prior to year-end 2018.
“The Kelvin-1X location was an ambitious step-out from the crest of the identified structure where we were exploring for a larger stratigraphic portion of the identified trap,” said Paul Welch, President and CEO of SDX. “Further potential exists within the current structure but in a location that could not be reached by side-tracking the well from the Kelvin-1X location. As a result, we have decided to move forward drilling the appraisal well locations in the original SD-1X structure so as not to delay the start of production targeted for the end of the year.”
Welch said after the company has completed the appraisal drilling and established initial production, it plans to commence a further exploration programme that will target both the remaining potential in the Kelvin structure along with the deeper oil potential within the block.