British Firm SDX Energy Announces Major Gas Discovery in Morocco

"The ’Upper’ and ’Lower Guebbas’ targets in OYF-2 have been encountered; the thickness and quality of the reservoir were better than pre-drill expectations. The Upper Guebbas was encountered at a measured depth of 1,001 meters, while the Lower Guebbas was penetrated at a measured depth of 1,120 meters," SDX Energy said in a statement.

According to the same source, approximately 1.3 to 1.9 billion cubic feet of gas is recoverable from the horizons encountered by the JAE-2 well. The well will be tested in February.

For the British company, OYF-2 is a very positive start, a discovery that is larger than pre-drilling expectations, and confirmation that its central production area extends to the north. "With the planned development going well, we now have the potential to increase our total reserves in Morocco to around three to four years of customer demand, our gas being sold under five and ten year fixed price contracts at a price of US$11/mcf," SDX Energy assures.

The company also plans to start drilling another well, BMK-1, located about 11 km north of OYF-2. "After BMK-1, another well near the infrastructure well, and two other potential wells at Lalla Mimouna, will be drilled to complete the campaign in March," the statement concludes.