(Sharecast News) - Oil and gas explorer SDX Energy has commenced production at the South Disouq concession in Egypt, with all four discovery wells now hooked up to the central processing facility.
SDX said on Tuesday that gas had been flowing through the CPF since 7 November and noted that all of the project's wells were producing at expected rates of between eight and fifteen million standard cubic feet of natural gas per day.
Over the last three days, SDX said the CPF had been achieving an average gross production rate of 23 MMscf/d of gas and 120 barrels per day of condensate. The AIM-listed company will gradually ramp up production with a view to achieving its targeted plateau gross production rate of 50 million standard cubic feet per day during Q1 2020.
Chief executive Mark Reid said: "South Disouq's production, which is coming on stream in line with our previous guidance, will result in a material increase to company's cash flows going forward."
Separately, SDX revealed it had made Reid's appointment to the role of chief executive permanent after serving as the firm's interim CEO since May. The group also appointed Nicholas Box to the role of chief financial officer.
As of 1005 GMT, SDX shares were up 3.29% at 23.24p.
SDX Energy (SDX)3 May 2024 15:50
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