SDX Energy Share News (SDX)

LONDON (Alliance News) - North Africa-focused oil and gas company SDX Energy Inc said on Tuesday it successfully completed and tested the SAH-2 well on the Sebou permit in Morocco.

The well achieved an average flow rate of conventional natural gas of 12.9 million cubic feet per day, with a maximum flow rate of 13.5 million cubic feet per day. The well will now be shut in for several days to build-up pressure, following which it will be connected to the local infrastructure and placed on test production.

In addition, the LNB-1 well on the Lalla Mimouna permit has been spud and is anticipated to take between 15-20 days to drill, the company said. If successful, the well be completed, flow tested and connected to existing infrastructure.

"We are very pleased to have reported a strong flow test result from our SAH-2 well in Morocco. This positive outcome underpins our guidance of gross production target of 8-10 million cubic feet per day of conventional natural gas in Morocco by the end of 2018," said President & Chief Executive Paul Welch.

"The LNB-1 exploration well represents an excellent exploration opportunity for us in Morocco. Success in LNB-1 will open up a large section of new acreage for development in the Gharb Basin, potentially allowing us to expand our overall production footprint in Morocco. We look forward to updating our stakeholders on the result in due course," Welch added.

Shares in SDX Energy were up 0.8% at 49.10 pence on Wednesday.