SDX Energy, a London based international oil and gas exploration, production and development company with a principal focus on the Middle East and North Africa, has announced a commercial discovery at Sobhi well in Egypt
Located in the South Disouq Exploration Permit onshore Nile Delta, Egypt, the well has been drilled to a measured depth of 7,245 feet, encountering 108 feet net of high-quality gas-bearing sands. This discovery is with an average porosity of 20 per cent, near the base of the Kafr El Sheikh (KES) formation.
The top of the KES sand was encountered at a measured depth of 6,506 feet. Management’s best estimate is that the well has encountered approximately 24 bcfe of recoverable gas and condensate resources.
The drilling rig is now completing the well and preparing for testing in the coming weeks. The results of the testing of SD-12X will be made in due course.
The company expect that the Sobhi well will be tied in during 2021 via a 5.8 kmtie-in to the Ibn Yunus-1X location where an existing flow-line connects to the South Disouq Central Processing Facility.
SDX drilled the Sobhi well at a 100 per cent working interest and the total cost of the well, including the cost to complete, is estimated at US$3.7mn
Mark Reid, CEO of SDX, commented, :This is an excellent result for SDX and fully justifies our confidence to drill this well on a sole risk basis. South Disouq represents our flagship asset and in the current economic climate this fixed price, low cost gas development is highly cash generative for the Group.
“The Sobhi discovery has the potential to extend the current South Disouq plateau production of 50 MMscfe/d through to 2023/24 with a low-cost tie in, utilising the existing gas processing plant. We look forwarding to updating the market further following the testing of the well”