British Firm SDX Energy Begins Gas Production at New Well in Morocco

"The KSR-21 well, which was drilled and successfully tested in the fourth quarter of 2023, has been connected to the existing infrastructure and will begin production as soon as the expected government approvals are received," SDX said in a statement. The gas company had announced on January 9 the imminent start of production of this well drilled three months earlier at a depth of around 1,950 meters.

The gas company had also announced the signing, with Dika Morocco Africa (DMA), a subsidiary of the Chinese group Citic Dicastal, of a second gas prepayment agreement for an amount of $2.1 million for the delivery of gas to Morocco in the first quarter of 2024. A long-term prepayment agreement is also under negotiation, it was reported.

In addition, the British company had announced on October 5 that it had received an advance payment of around $2 million from DMA and that these funds would be used to cover the drilling costs of the KSR-21 well. "Another higher prepayment agreement was under negotiation and should be concluded and the funds drawn in early 2024," it had specified.

These expected funds will be dedicated "to financing a new drilling program of several consecutive wells". With the start-up of the KSR-21 well located in Central Sebou, the number of wells operated by SDX in the Gharb basin now stands at four, including Lalla Mimouna Sud, Gharb Centre and Moulay Bouchta Ouest. The gas company holds a 75% stake in these concessions.