Seismic | Field Development

SDX Touts Potential of Egyptian South Disouq, Meseda Prospects

Email    |    Print    |    Bookmark

You Need to login first

   |    Tuesday,November 15,2016

SDX Energy reported an operational update on its South Disouq and Meseda concessions in Egypt.

South Disouq

As previously announced on 10 October 2016, SDX’s initial assessment of the 3D seismic data at South Disouq was positive and identified potential for both oil and gas bearing prospects. Further interpretation of the data has now indicated several Abu Madi and Kafr El Sheikh prospects displaying strong Class III amplitude versus offset (AVO) responses. Testing of similar responses in offset areas has resulted in numerous discoveries at these stratigraphic levels. These responses have allowed SDX to high grade several prospects for drilling in the near term. These positive AVO responses further derisk the prospectivity in the area, allowing SDX and its partners to achieve the intended goal of the 3D seismic acquisition program.

SDX, who operate with a 55% equity interest on the concession, and its partner, have agreed on the target and location for drilling the carried exploration well, identified during the interpretation of data. The permitting process has commenced and a team has been engaged to provide technical assistance on the well, with drilling set to commence by early Q1 2017.

Subsequent to the announcement on 10 October 2016, the Company can confirm that it has received enquiries from a number of operators regarding farming in to the licence. Although the Company is fully carried on its remaining obligations in the license and is unlikely to farm down any additional equity, it has agreed to let selected companies submit proposals to acquire an interest in the concession. These discussions are ongoing and SDX will update the market as appropriate.

Meseda

SDX has completed the final design work on the Electrical Submersible Pump (“ESP”) program, which it undertook after conclusion of its field review in May 2016. The Company is now finalising its technical review of the Meseda facility after which it will procure equipment necessary to double the treating capacity of the central production facility (“CPF”), enabling it to significantly raise net production from the concession.