Rabat - By drilling wells in Morocco and Egypt, the British oil and gas exploration company SDX Energy achieved a turnover of USD 28.1 million by September against USD 7.6 million in 2016.
Rabat – By drilling wells in Morocco and Egypt, the British oil and gas exploration company SDX Energy achieved a turnover of USD 28.1 million by September against USD 7.6 million in 2016.
The SDX Energy drilling program, currently underway in Morocco, continues to outperform expectations. The UK based company has announced a daily average flow of 6.4 million cubic feet of gas after testing on its KSR-14 well, located in the exploration license Sebou.
For the company, these results encourage SDX Energy to pursue the well’s drilling activity “for an extended period,” before being closed to increase pressure, as part of the group’s estimate of the year-end reserve. “This is another positive flow of our active Moroccan drilling campaign. The results of the KSR-14 tests are higher than our expectations,” said Paul Welch, CEO of SDX Energy.
According to Welsh, the well was able to “produce at a rate that would allow us to meet our entire daily sales commitment.” These results support the company in its investments in Morocco and allow it to project itself serenely. “This allows us to believe that we can reliably increase our production rates to meet the additional demands of customers based on the results of the current program, as we plan to increase our sales volumes by 50 percent in 2018,” added Welch.
In addition, the connection work of the KSR-15 well to the company’s gas transmission and delivery infrastructure has been finalized. “The well should be finished within three weeks,” confirmed the CEO, adding that a production test is set to run by early December.
SDX Energy further indicated that the process of moving the rig to the KSR-16 well site has already begun.
Overall, it has been a solid first nine months for SDX in the kingdom, as its net income in Morocco increased by USD 4 million to reach USD 20.4 million by September.
“This was one of the strongest quarters of the company, with sales net increase of 271 percent over one year and a success of drilling in our North African portfolio,” rejoiced Welch. “We are already beginning to see the financial benefits of the acquisition of Circle Oil, both in Egypt and Morocco.”