SDX Energy, the Middle East and North Africa-focused oil and gas company said it expects production to get a boost from new drilling in Morocco and Egypt.
The company, which saw its 2019 production rise 12 per cent to 4,020 barrels of oil equivalent per day (boe/d) compared the year before said it sees 2020 production rising to upto 7,000 boe/d, up 68-74 per cent from 2019.
“We have entered 2020 in a strong position with production at record levels, good monthly cash generation, a strong balance sheet and a busy work programme of drilling ahead of us, which is all fully funded,” Mark Reid, CEO of SDX said in a statement. “With eight wells planned for the first half 2020, six of which are exploration/appraisal in nature, we are moving into a very exciting period of activity."
As part of a drilling campaign in Morocco, seven 'close to infrastructure' appraisal/development wells have been drilled to date in the 12 well campaign resulting in five commercial discoveries.
The company estimates that this has added 2.0 - 2.5 bcf (gross) to its estimate of existing gross gas reserves of 4.0 - 5.0 bcf in Morocco.
The company expects to add incremental reserves and contingent resources from the remaining five wells in the campaign and through future development of its acreage.
Meanwhile in Egypt, the company completed the South Disouq development project and brought it on production in the fourth quarter of 2019.
SDX is planning two new exploration wells where four discoveries have already been made. The first well, Salah, is expected to spud in mid/late February and complete in April 2020, while the second well, Sobhi, is planned to spud in late April/early May and be completed in early June.
SDX said depending on partnering discussions, a third South Disouq well targeting deeper prospectivity in a potential new play fairway may be drilled later in 2020.