(Sharecast News) - SDX announced the start of drilling operations for the Beni Malek-2 well (BMK-2) in the Rharb Basin of Morocco on Wednesday, situated 1.5 kilometres from the BMK-1 discovery well.
The AIM-traded firm sid the BMK-2 well was slated to reach a planned depth of around 1,470 metres, and aimed to target three stacked reservoirs within the Guebbas formation, identified through 3D seismic technology.
It followed the successful outcome of the KSR-21 well drilled in September, and would be part of an ongoing drilling campaign in Morocco.
Should BMK-2 yield positive results, the well would be swiftly completed and tied-in for production to supplement existing output, particularly catering to CITIC Dicastal, the company's largest offtaker, with an immediate and growing demand for SDX's gas.
As the sole independent gas producer in Morocco, SDX said it aspired to become a significant gas producer collaborating closely with its partner, the Office National des Hydrocarbures et des Mines (ONHYM), across all facets of development and production.
Gas extracted from SDX's wells is supplied to numerous off-takers in the Kenitra industrial area.
At 1347 BST, shares in SDX Energy were down 1.37% at 3.6p.
Reporting by Josh White for Sharecast.com.
SDX Energy (SDX)