SDX Energy Commences Drilling Ksiri-21 Well in North Morocco

MENA-focused energy company SDX Energy announced on Monday that it has commenced the drilling of the Ksiri-21 well in Sebou Central of the Gharb Basin, Morocco.

Rabat – MENA-focused energy company SDX Energy announced on Monday that it has commenced the drilling of the Ksiri-21 well in Sebou Central of the Gharb Basin, Morocco.

According to a press release from the company, the well will be drilled to a planned total depth of approximately 1,950 meters.

The well is targeting a well-defined prospect within the main Hoot formation, which is the main producing sand in the area. SDX has drilled over 20 production wells in the same basin, the statement explains.

The company says that the new well presents a “low-risk step-out location.” The well can be immediately brought into production, supplying gas to existing customers.

Daniel Gould, SDX Energy’s Managing Director, commented on the news saying, “Commencement of drilling signifies an early milestone in SDX’s new roadmap in Morocco, which the Company will present imminently.”

“As part of re-energizing the Company’s upstream production, we will assess the feasibility of drilling additional wells, back to back,” he added.

He continued, “This type of program would reduce capex per well, ensure operational efficiency, and prove sufficient reserves of ‘gas-behind-pipe’ to meet both existing and future demand.”

SDX Energy recently secured financing for the expansion of its gas production in Morocco under a loan agreement with Aleph Finance, amounting to up to $3.25 million.

An initial sum of $2 million has already been drawn and will be utilized for various purposes, including reducing outstanding debt to the European Bank for Reconstruction and Development and expediting the Moroccan drilling campaign.

SDX currently has a 75% interest in the drilling operations while Morocco’s mining and hydrocarbon office 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.