Morocco awarded North African focused oil and gas company, SDX, licenses to expand in Moulay Bouchta Ouest and Lalla Mimouna Sud.
By Carolina McCabe
Rabat – Morocco awarded North African focused oil and gas company, SDX, licenses to expand in Moulay Bouchta Ouest and Lalla Mimouna Sud.
The Moroccan government awarded SDX Energy two new licenses in Moulay Bouchta Ouest and Lalla Mimouna Sud, allowing the North African focused energy company to significantly increase its presence in Morocco. SDX Energy, headquartered in London, is an oil and gas exploration, production, and development company.
The company received the Moulay Bouchta Ouest exploration licence for an eight year period, which spans 458 km2. Within the first three-and-a-half-year period of the project, SDX plans to reprocess 150 kilometres of 2D seismic data, gain 100 km2 of new 3D seismic, and drill one exploration.
In 2017, the company received the permit for Lalla Mimouna Sud as a part of their acquisition of Circle Oil. Since the concession expired when the work commitments had been completed, SDX reapplied and was re-awarded with the Lalla Mimouna Sud licence for an eight year period. The permitted region is 857 km2. Within the first three-year period, SDX intends to acquire 50 km2 of 3D seismic and one drill exploration.
“We are very pleased to be expanding our acreage in Morocco, which we see as a key growth region for SDX going forward. Both of these permits offer significant underexplored hydrocarbon potential and are located adjacent to our existing operations and infrastructure, so can be tied into our facilities quickly. The award also gives SDX and its partner control over the entire onshore Gharb Basin,” commented the President and CEO of SDX, Paul Welch.
SDX’s portfolio includes six concessions between Egypt and Morocco. The company currently works with two producing assets in Egypt, North West Gemsa and Meseda. In Morocco, SDX works in Sebou, in the Rharb Basin. The company describes its assets as “exceptionally low cost” and “resilient in a low oil price environment.” In addition to their producing assets, SDX also has exploration projects in Morocco and Egypt.
“We have an active work programme planned for Morocco in 2019, with a 12 well drilling programme set to commence in H2. With the addition of these new permits, we will be able to further grow our reserves and production base in Morocco, and generate significant value for our stakeholders, as we look to build upon our market leading position in country,” Welch stated.
SDX attributes its interest in Morocco to uncomplicated business, increasing gas prices, significant growth potential, and lower operations and drilling costs.