(Alliance News) - SDX Energy PLC on Tuesday noted increased reserves at the South Disouq concession in Egypt, following a technical and economic audit by Gaffney, Cline & Associates.
The audit reported that South Disouq - in which SDX has a 55% working interest - had a gross proved and probable reserves at the end of September of 86 billion cubic feet of natural gas and 600,000 barrels of condensate.
This is equivalent to 89 billion cubic feet equivalent, and reflects a 35% increase from 66 bcfe in SDX's reserves audit covering all of its concessions at the end of December 2018.
The higher reserves was as a result of reprocessed 3D seismic data in 2019, providing a better understanding of the structure and distribution of the reservoir around the production wells.
Currently, gas has been flowing through the South Disouq central processing facility since early November, with all four production wells and the facility performing as expected. SDX has been producing at a gross stabilised rate of 50 million cubic feet equivalent per day since December 10.
"We are now looking forward to the commencement of our South Disouq drilling campaign in February when we will be spudding the first of two wells targeting the same horizons encountered in our four discoveries to date," said Chief Executive Officer Mark Reid.
"If successful, these wells have the potential to significantly increase our existing reserves and can be quickly tied into the South Disouq CPF. Depending on partnering discussions, a third well targeting deeper prospectivity in a potential new play fairway, may be drilled later in 2020," Reid added.
Shares in SDX Energy - which is based in London - were up 4.1% at 22.90 pence on Tuesday
By Dayo Laniyan; dayolaniyan@alliancenews.com
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