SDX Energy Announces Opening of Two Gas Production Wells in Morocco

SDX Energy, a London-listed energy company with assets in Morocco and Egypt, announced on Monday the opening of two gas production areas in Morocco following successful drilling operations in the SAK-1 and KSR-20 wells in northern Morocco.

Rabat – SDX Energy, a London-listed energy company with assets in Morocco and Egypt, announced on Monday the opening of two gas production areas in Morocco following successful drilling operations in the SAK-1 and KSR-20 wells in northern Morocco.

In a stock filing, SDX Energy explains that after opening the two production areas, it looks to drill more wells under its four exploration permits in Morocco in 2023.

The SAK-1 well is already online and has been connected to the company’s infrastructure. Testing results indicate that the gas discovery volumes will be on the higher side of the pre-drill P50 estimate of 0.44 billion cubic feet, approximately 12.4 million cubic meters of natural gas, the filing indicates.

The company also reported gas reserves in the KSR-20 well, which is still undergoing technical studies. The well will be online “as soon as permitting and tie-in are completed,” with exact details of the gas reserve set to be posted later.

In the statement, the company announced that it currently has identified over 70 prospective drilling areas.

Commenting on the news of the gas discovery, SDX’s CEO Mark Reid said: “We are pleased with the results of both the SAK-1 and KSR-20 wells.”

“In addition to opening a new play fairway with numerous follow-on drillable targets, the wells will contribute immediately to production and revenue growth in an area where demand and gas pricing is robust,” Reid explained.

On the company’s future operations in the region, the CEO stated that “Morocco remains a key area of potential growth for SDX and we look forward to planning further drilling in 2023.”

The CEO also thanked Morocco’s National Office for Mines and Hydrocarbons (ONHYM), “for the provision of the excellent drilling team and the ONHYM 525 rig which was used to great effect during the campaign,” he concluded.

SDX currently has a 75% interest in the drilling operations while ONHYM holds a 25% interest. The company’s portfolio in Morocco includes four exploration and drilling permits: The Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud exploration permits.