SDX Energy commences production at South Disouq site in Egypt
The site at South Disouq, of which the firm owns 55% working interest, has had gas flowing through its central processing facility (‘CPF’) since 7th November 2019.
Hooked up to the CPF are four discovery wells that have each been tested at their expected rates of between 8 MMscf/d and 15 MMscf/d.
The CPF has been operating as expected in the last three days, with an average gross production rate of 23 MMscf/d of gas and 120 bbls/d of condensate, equivalent to approximately 24 MMscfe/d.
The initial flow rates were reported in line with the company’s expectations, and testing will now continue over the next coming weeks.
SDX price chartThe company explained how all gas production will be sold to national gas firm, EGAS, at a fixed price of US$2.85/Mcf, with the Government of Egypt's entitlement share of gross production equating to approximately 51%.
Mark Reid, CEO of SDX, expressed his gratitude to the state, EGAS, and contractors, Petrojet and Expro, in helping to achieve what he described as an “important milestone” for the company.
He commented, “South Disouq's production, which is coming on stream in line with our previous guidance, will result in a material increase to company's cash flows going forward.
The wells will continue to be produced and tested and we will gradually ramp up production with a view to achieving our target production plateau rate of 50 MMscfe/d during Q1 2020.”
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