SDX Energy has announced the result of its Rabul-3 well in the West Gharib Concession in Egypt that hit heavy oil.
The Rabul-3 development well was drilled to a total depth of 5,129 feet and encountered approximately 116 feet of net heavy oil pay across the Yusr and Bakr formations.
The well will be completed as a producer later this month, connected to the central processing facilities at Meseda and is expected to be brought on-line at an average stabilised rate of approximately 300 bopd, which is at the upper end of pre-drill expectations.
Mark Reid, CEO of SDX, commented: "We are very pleased to announce this latest result in our low cost Meseda/Rabul area, which, thanks to its close proximity to existing infrastructure, will be contributing to cashflow in the coming weeks. This well provides further support to our FY 2020 gross production guidance of 3,200 - 3,300 bopd for Meseda. We look forward to updating the market further on our Egyptian drilling campaign in due course.”
He added: "Even at our $55/bbl long-term planning oil price, approximately 80 per cent of 2020 and 90 per cent of 2021 forecast cash flows will come from our fixed price gas businesses in Egypt and Morocco and accordingly we remain strongly positioned to weather the current fall in oil prices."
SDX has a 50 per cent working interest and is joint operator in the West Gharib Concession.