SDX Energy on track for 2017 drilling in Morocco

SDX Energy Inc (LON:SDX, CVE:SDX) has told investors it remains on track to drill new wells in Morocco later this year, as it has secured extensions to its exploration permits.

Two wells are planned in the second half of this year on the Lalla Mimouna Nord and Sud permits, which have been extended until March 2018.

Elsewhere, the company has secured eight-year extensions for permits that make up the Sebou project.

SDX has committed to drilling three new wells at Sebou within the first four years of the new permit period – and two of those are slated for 2017.

Significantly, SDX highlighted that the drill targets are Sebou are located in close proximity to existing infrastructure and as a result could potentially be put into production quickly.

Paul Welch, SDX chief executive, said: “2017 has already proven to be an extremely active time for SDX, as we focus on developing our assets across the portfolio, in both Morocco and Egypt. 

“We are encouraged by the opportunity set that we have acquired and subsequently developed in Morocco.

“The extensions in Sebou will allow SDX to execute on a drilling campaign that will provide additional production capacity and reserves, if successful.”

Welch highlighted that Lalla Mimouna and Sebou can allow the company to grow, whilst making the most of the opportunity presented in Morocco’s local gas market.

“The remainder of the year is set to be a period of high activity in Morocco, with a total of seven wells to be drilled,” he added.

“This will continue to build on the solid progress made to date for SDX in delivering high margin growth across the portfolio.”

Story by ProactiveInvestors