SDX Energy Inc (LON:SDX, CVEL:SDX) told investors it has ‘high graded’ exploration prospects identified in new 3D seismic in the South Disouq exploration area, Egypt.
The oil and gas company has been working to analyse and interpret the data and it today highlights that the programme has identified several prospects, with numerous discoveries.
“These responses have allowed SDX to high grade several prospects for drilling in the near term,” SDX said in a statement. It added that the work de-risks prospectivity in the area.
SDX Energy, which owns a 55% stake in the venture, said it has now agreed with its partner the target and location for the drilling of a ‘carried’ exploration well at South Disouq. Drilling is due to take place in early 2017, it added.
Additonally, SDX notes that it has had enquiries from a number of parties about possible further farm-outs for the project.
The company told investors that whilst its costs are already fully carried for the current programmes and it is unlikely to farm-down further, it has agreed to allow selected companies to submit proposals to acquire interests in the project.
Talks are ongoing, and SDX said it would update the market as appropriate.
“Today’s announcement demonstrates solid operational progress and momentum for SDX,” said chief executive Paul Welch.
“The update on South Disouq marks an important step for the company, as we move out of the analysis phase of our work programme and into drilling phase.”
SDX, meanwhile, also updated on its Meseda project where it has now complete final design work for an electrical submersible pump (ESP) programme and it is now finalising a technical review of the Meseda facility. It promises to significantly raise net production from the assets.
Welch added: “At Meseda, we are excited to have the majority of the technical work completed and look forward to moving into the implementation phase in the near term in order to maximise the field’s full potential.”
Story by ProactiveInvestors