SDX Energy PLC (LON:SDX) on Monday (June 28) kicked off a two-well drilling campaign on its South Disouq gas asset in Egypt.
The first well, IY-2, is a step-out development opportunity targeting the high-porosity and permeability Basal Kafr El Sheikh reservoir at 6,600 feet in the Ibn Yunus Field.
It will take around a month to complete with results expected late “July-early August”. The plan then is to tie it into nearby infrastructure, with production expected late in the third quarter.
The second well in the campaign, the HA-1X, is an exploration opportunity with work getting underway in early August, shortly after the completion of IY-2.
It is targeting gross un-risked mean recoverable volumes of 139bn cubic feet (BCF) of gas with a 33% chance of success.
It is also expected to take around a month to drill with results expected in mid-September.
SDX chief executive Mark Reid said: “After our previous highly successful campaigns at South Disouq, where we have achieved five discoveries from seven wells drilled, I am excited to announce the commencement of our next phase of drilling.”
The company has a 55% working interest in South Disouq and is the operator of the acreage.
The shares opened 2.7% higher at 16p. Broker Peel Hunt, which reckons the stock is worth 35p, said: “We look forward to a catalyst-rich Q3.”
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