SDX Energy upbeat on development well drilling at West Gharib

(Sharecast News) - SDX Energy announced the result of its Rabul-3 well in the West Gharib Concession in Egypt on Tuesday, where it has a 50% working interest and is the joint operator.
The AIM-traded firm said the well was drilled to a total depth of 5,129 feet, and encountered around 116 feet of net heavy oil pay across the Yusr and Bakr formations.

It said the Yusr and Bakr formations were of "excellent" reservoir quality, with an average porosity of 21%.

The company said the well would be completed as a producer later in the month, connected to the central processing facilities at Meseda, and was expected to be brought on-line at an average stabilised rate of approximately 300 barrels of oil per day.

That would be at the upper end of pre-drill expectations, the board said.

"We are very pleased to announce this latest result in our low cost Meseda/Rabul area, which, thanks to its close proximity to existing infrastructure, will be contributing to cash flow in the coming weeks," said chief executive officer Mark Reid.

"This well provides further support to our 2020 financial year gross production guidance of 3,200 to 3,300 barrels of oil per day for Meseda.

"Even at our $55 per barrel long-term planning oil price, approximately 80% of 2020 and 90% of 2021 forecast cash flows will come from our fixed price gas businesses in Egypt and Morocco and accordingly we remain strongly positioned to weather the current fall in oil prices."

At 1527 GMT, shares in SDX Energy were up 4.13% at 15.88p.