SDX Energy, the MENA-focused oil and gas company, said it started drilling operations at the Salah well in South Disouq in Egypt.
The Salah SD-6X (Salah) well, in which SDX has a 55 per cent working interest, is expected to a reach its targeted depth of approximately 9,000 feet in late March/early April, the company said in a statement.
Salah's primary targets are in the same Kafr el Sheikh and Abu Madi formations that the company's existing four wells are already producing from. The well is targeting gross P50 unrisked prospective resources of c.71 bcfe, as estimated by management.
On completion of Salah, the rig will move to the location of the SD-12X (Sobhi) well, approximately six kilometres to the west, which is targeting gross P50 unrisked prospective resources of c.33 bcfe, as estimated by management. Sobhi's primary target is also in the Kafr el Sheikh formation at a depth of approximately 7,000 feet.
"Salah and Sohbi are very exciting wells for the company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities,” said Mark Reid, CEO of SDX. “We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course."
If successful, the Salah and Sobhi wells would require short, 8.0 kilometre and 5.8 kilometre, tie-ins to the South Disouq Central Processing Facility with SDX's share of the tie-in cost estimated at US$2.5 million and US$1.9 million respectively.
The company is reviewing a number of development concepts depending on the size of any discovery that is made.
SDX said that to fully produce the 71 bcfe gross P50 unrisked resource targeted in the Salah well, two further development wells would likely be required. The 33 bcfe gross P50 unrisked resource targeted in the Sobhi well, would potentially only require one further development well.