Gas exploration: SDX Energy begins second phase of its drilling campaign in the Gharb
The British oil and gas exploration company operating in North Africa has announced the start of the second phase of its drilling campaign in Morocco, involving two wells located in the Gharb region. The results will be known next December.
In a press release released on Friday, Nov.19, the London-based company explains that this second phase relates, firstly, to the drilling of the KSR-19 well and, secondly, to the drilling of the SAK-1 well.
“This second phase will consist of two wells with the objective of adding reserves to allow us to continue to deliver gas to our customers in line with their contractual requirements,” Mark Reid, CEO of SDX, said. “Furthermore, with SAK-1, we hope to open a new exploitation area at Lalla Mimouna Sud to the west of our core producing area,” he added.
Both wells are looking to encounter shallow, biogenic gas accumulations. KSR-19 is near to the Company’s existing infrastructure, thus enabling the tie-in to be completed quickly and at low cost. SAK-1 is a little further from the existing infrastructure, but will still be relatively quick to tie-in and, if successful, will open a new area for follow on drilling and further exploitation, the press release explained, adding that the Company is utilizing the drilling rig that was previously stacked in its yard in Morocco, thereby incurring minimal mobilization costs.
In Morocco, SDX has a 75% working interest in four development/production concessions, all situated in the Gharb Basin.
The producing assets in Morocco are characterized by attractive gas prices and exceptionally low operating costs. SDX has a strong weighting of fixed price gas assets in its portfolio with low operating costs and attractive margins throughout, providing resilience in a low commodity price environment.