SDX Energy Share News (SDX)

(Sharecast News) - North Africa-focussed oil and gas company SDX Energy announced on Monday that a gas discovery has been made at its SD-3X well in the South Disouq Concession in Egypt, where it holds a 55% working interest as the operator.The AIM-traded firm said SD-3X well was drilled to a total depth of 7,842 feet, and encountered 32.6 feet of net conventional natural gas pay in the Abu Madi and Kafr el Sheik horizons, with an average porosity in the pay sections of 21.7%.It said the SD-3X well would now be completed as a producer in the Abu Madi horizon, and then tested after the drilling rig was moved off location.In order to optimise the potential recovery from the SD-3X well, the Abu Madi horizon would be completed and produced initially before re-entering the well to complete and produce the Kafr el Sheik horizon.The Abu Madi testing was anticipated to begin between 30 and 45 days after the rig departed, depending on the availability of testing equipment.Assuming a successful test in the Abu Madi, SDX said it anticipated that the well would be connected to the infrastructure located adjacent to the original SD-1X discovery, where production start-up was anticipated late in the fourth quarter of 2018."The discovery of gas in both the Abu Madi and Kafr el Sheik horizons is a very positive outcome for the SD-3X well," said SDX president and CEO Paul Welch."As demonstrated by the Ibn Yunus discovery earlier this year, the Kafr el Sheik horizon is an excellent quality productive sequence."Welch said the SD-3X discovery had confirmed that the horizon was "extensively present" throughout the concession."We will now analyse the data from all four wells drilled in the South Disouq campaign, as well as reprocessing and inverting the existing 3D seismic we have on the concession."Upon interpretation of this data, and completion of the new 3D survey later this year, we expect to identify further Abu Madi and Kafr el Sheik prospectivity for drilling in 2019 and 2020."With our drilling activities completed, we will now focus on the completion of the South Disouq processing facility and pipeline infrastructure with a view to achieving first production by the end of 2018."