British Oil Firm SDX Energy Halts Morocco Drilling Program Until Fall

End of the first phase of its drilling operations in the Gharb. In 2021, SDX Energy planned to invest $25 to $25.6 million and drill five wells, reports Energy Voice. After drilling the LMS-2 well in Morocco, whose permeability is low, it has decided to relinquish its exploitation license. However, the results have encouraged the company which intends to test the well in 2022-2023. It plans to start drilling two other wells during the year as part of the second phase of its program in September/October next.

"The OYF-3, KSR-17 and KSR-18 wells in Morocco have all been commercial successes, and OYF-3 and KSR-17 are already connected and producing in our infrastructure," said Mark Reid, CEO of SDX, adding that the company expects KSR-18 to be tested and connected in the next two weeks. He said the wells have yielded 1.5 to 1.6 billion cubic feet of gas.

SDX started its well drilling activities last May due to the Covid-19 pandemic. In accordance with contractual requirements, it has provided gas to its customers. The British company is also carrying out the same activities in Egypt where it hopes that the Ibn Yunus-2X well, located in South Disouq, will develop "in the coming days". The development of an HA-1X exploration well is expected in the third quarter. According to the CEO of SDX, it is a "potentially transformative well".

"This 139 Bcf gross prospective target, which has a 33% chance of success, has the potential to significantly transform the company’s resource profile. Finally, with the four-well campaign in West Gharb also expected to start soon, I look forward to updating the market in the coming months on what promises to be a very busy and exciting period of activity," added Mark Reid.