announced on Friday that drilling operations for the SD-6X (Salah) well have begun in South Disouq.
The Egyptian and Moroccan focused oil and gas firm is targeting to drill to a depth of 9000 feet, and around 71 bcfe of gross unrisked prospective resources, according to its own estimates.
SDX told investors after Salah, it will move the rig to SD-12X (Sobhi) 6 km west, to target around 33 bcfe of gross unrisked prospective resources.
Primary targets for both wells are in the same Kafr el Sheikh and Abu Madi formations that SDX already produces from, and if successful, would require 8km and 5.8km tie-ins to the South Disouq Central Processing Facility.
SDX said the share of the tie-in costs are estimated at $2.5 million and $1.9 million. It has a 55% working interest in the assets at South Disouq.
Shares in SDX ticked up 2.27% to 22.5p during Friday morning trading
Mark Reid, CEO of SDX, commented: "Salah and Sohbi are very exciting wells for the Company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities.”
“We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course."
SDX said it is reviewing a number of development concepts depending on the size of any discovery.
In order to fully produce the targeted resources at Salah and Sobhi, the company said three further development wells would likely be required, two at Salah and one at Sobhi.
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CEO Simon Potter commenting on the loan note issuance said: “we have now secured a funding package with considerably less overall dilution to shareholder equity than most commentators expected would be required.”