SDX detailed on Monday that the quality of the seismic data was better than expected and that the group had more insight into the exploration acreage.
Significantly, it highlighted It sees potential in the Abu Madi and Kafr El Sheikh gas and condensate formations, as well as the deeper Abu Roash and AEB horizons which are believed to contain oil.
And as chief executive Paul Welch explained to Proactive Investors the latter point was unexpected and fantastic news.
The exploration area, referred to as South Disouq, is in the Nile delta which is typically gas prone and SDX picked up the acreage in 2013 as an opportunity to address a deficit in gas production in Egypt.
But Welch today added that the newly confirmed oil plays, unanticipated in this area, are prolific in the western desert region.
“It allows us to pick [drilling] locations based upon both oil prospectivity and gas prospectivity,” Welch said in an interview.
He added: “It is giving us a lot more confidence that we’ll have success in this area, on multiple levels.”
“The fact that we can image it now and we can see clearly prospects and structuration down deeper has definitely got us excited.
“And when I say deeper, it is not hugely deep here. We’re talking about 10-12,000 feet so it is clearly achievable at very reasonable prices to drill.”
SDX is now building a prospect inventory and is looking at possible locations for new drilling, the company added. Its participation in an exploration well would be fully carried.
So far it sees fifteen leads, of which two are already deemed ‘drillable’. Further analysis and interpretation will continue ahead of the drill programme, slated to start in late 2016 or early 2017.
Story by ProactiveInvestors