SDX Sells 50% of North West Gemsa License for $3 MM - EGYPT OIL & GAS / SDX ENERGY

Tuesday, 14th July 2020

SDX Energy has announced that it sold 50% working interest in the North West Gemsa license which is located in the Eastern Desert, to Gulf Energy, a private Egyptian oil and gas company, for an amount of $3 million, according to a press release.

It stated that the purchaser company will use $1.4 million to discharge the company’s remaining liabilities on the license.

The company elaborated that this action is part of SDX’s ongoing focus and commitment to capital discipline and careful management of the Group’s portfolio whilst also providing additional cash to further strengthen its balance sheet.

CEO of SDX, Mark Reid, commented “We are pleased to complete the sale of our interest in the North West Gemsa license. Whilst we have presented our interest in the license as non-core for some time, owing to its reducing production and marginal netbacks, it is a welcome outcome to be exiting the license with a useful cash consideration and also avoiding the upcoming associated budgeted capex of approximately $2.0 million for the year.”

SDX Energy’s Sobhi well set to produce 10-12 mcf / d of natural gas - ENTERPRISE

Thursday, 30 April 2020

SDX Energy is expected to produce 10-12 mcf / d of natural gas from its Sobhi well, the company said in a statement (see below). 

The discovery has grown the South Disouq concession’s production capabilities by 50%, putting SDX on track to extract up to 50 mcf / d by 2023. Earlier this month SDX discovered 24 bcf of natural gas at the Sobhi well, marking a “low-cost, highly-cash generative" expansion to the field.

The full statement follows:

SDX ENERGY PLC ("SDX" or the "Company")

SDX Energy begins gas production at Egyptian site - CITY A.M

Tuesday 12 November 2019 12:47 pm

UK oil and gas exploratory firm SDX Energy announced this morning that production had started at the company’s South Disouq concession in Egypt.

Each of the site’s four discovery wells have been tested and gas has been flowing since the 7 November.

All gas production at the site, in which SDX owns a 55 per cent stake, will be sold to Egypt’s national gas company Egas.

The company said that initial flow rates were in line with expectations and that SDX will gradually ramp up production with a view to achieving its targeted production rate of 50m standard feet per day in the first quarter of 2020.

SDX, BP fail to reach agreement on Egypt assets - ENTERPRISE

Sunday, 21 October 2018

BP talks to sell Egypt assets to SDX fail. SDX Energy has “terminated” talks to acquire BP’s Egypt assets after failing to reach an agreement, the company said in a statement on Thursday (pdf). SDX gave no color on why the talks broke down. SDX Energy announced last month that it was in open talks with BP to acquire “a significant package of [its] assets in Egypt.” It was not not immediately clear which assets SDX hoped to acquire, but the company said the transaction would take the form of a reverse takeover, allowing SDX entry to the London Stock Exchange’s main market. BP had been said to be shopping for buyers since at least March as part of a plan to sell USD 2-3 bn’s worth of maturing assets this year.

BP isn’t exiting Egypt: The global oil major plans to invest USD 2 bn in Egypt next year, BP North Africa Regional President Hesham Mekawi told Al Shorouk in an interview last month. Among the assets in which it is investing is its Raven field, which is part of its West Nile concessions in Fayoum and Giza. The Raven gas field is expected to come online in 2H2019, a source from the Oil Ministry official told Youm7 on Thursday. Production is expected to reach 350 mcf/d of gas.

Oil and gas company SDX Energy confirms talks with BP to buy assets in Egypt - NASDAQ / REUTERS

September 20, 2018, 09:38:00 AM EDT

North African-focused oil and gas company SDX Energy on Thursday confirmed that it was in discussions with BP Plc to buy a package of assets in Egypt.

London-listed SDX said the acquisition would constitute a reverse takeover.

SDX said its shares have been suspended from trading on London's junior market, AIM, with immediate effect and will remain suspended until an admission document has been published or the company confirms that a deal is not proceeding.

Reuters reported earlier in the year, citing banking sources, that BP is seeking buyers for its stake in a 50-year-old oil and gas business in Egypt, then estimated to be worth around $500 million.

It was not immediately clear which assets SDX was in talks with BP over.

Earlier in the day, oil and gas explorer and producer SOCO International said it signed a deal to buy privately-owned Merlon Petroleum El Fayum Company for about $215 million. Merlon holds the operated working interest onshore El Fayum in Egypt.

SDX Hits Gas Onshore Egypt - RIGZONE

Monday, July 23, 2018
Andreas Exarheas

North Africa focused oil and gas company, SDX Energy Inc., announced Monday that a gas discovery has been made at its onshore SD-3X well, in Egypt’s South Disouq Concession.

The 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, SDX said in a company statement. SD-3X will now be completed as a producer in the Abu Madi horizon and then tested after the drilling rig has moved off location.

“The discovery of gas in both the Abu Madi and Kafr el Sheik horizons is a very positive outcome for the SD-3X well,” Paul Welch, president and CEO of SDX, said in a company statement.

“We will now analyze 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,” he added.

SDX flows gas from new well in Egypt - ENERGY VOICE

16/07/2018 6:14 am
Allister Thomas

London-listed SDX Energy has had a successful production test from an appraisal well in South Disouq, Egypt.

The SD-4X well flowed for two successive 12-hour periods at 5.4 and 8.6million standard cubic feet of gas (MMscfd) respectively.

It later had an extended 24-hour flow at 10.5MMscfd.

SDX has a 55% working interest and said the well gives it “additional confidence” to deliver a peak production rate of 50MMscfd in South Disouq.

President and CEO Paul Welch said: “We are very pleased to report another successful production test result, at our SD-4X appraisal well in South Disouq.

“We intend to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months.

“We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50 MMscfd of conventional natural gas.”

SDX Energy reports gas discovery in Egypt's South Disouq Concession - WORLD OIL

JUNE/19/2018

LONDON -- SDX Energy Inc., the North Africa focused oil and gas company, has announced that a gas discovery has been made at its SD-4X well in the South Disouq Concession, Egypt (SDX 55% working interest and operator).

The SD-4X well was drilled to a TD of 7,806 ft and encountered 89 ft of net conventional natural gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 24%. The well came in on prognosis with a reservoir section of similar quality but thicker than the original SD-1X discovery well.

The well will be completed as a producer in the Abu Madi and then tested after the drilling rig has moved off location. The testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. Assuming a successful test, it is anticipated that the well will be connected to the infrastructure located adjacent to the original SD-1X discovery, where production start-up is anticipated late in fourth-quarter 2018. After completion, the rig will move to the SD-3X well which is the second of two appraisal locations included in the 2018 development program.

SDX announces spud of SRM-3 oil well in Egypt - OIL REVIEW MIDDLE EAST

Sunday, 17 June 2018 06:39

SDX Energy Inc, the North Africa-focused oil and gas firm, has announced to spud its SRM-3 appraisal well at South Ramadan, Egypt, where SDX has a 12.75 per cent working interest

The SRM-3 well is the last remaining commitment well on the South Ramadan concession. The well is anticipated to take up to 90 days to drill and complete. Based upon the results of this well SDX will decide how to optimise its position in the licence.

London-headquartered SDX is a continual player in North Africa’s oil and gas sector. In May 2018, the company achieved positive results of the well test conducted on the Ibn Yunus 1X well, following the conventional natural gas discovery at South Disouq, Egypt.

Apart from Egypt, SDX has a significant presence in Morocco’s oil and gas sector as well. It made a conventional natural gas discovery at the LMS-1 exploration well on the Lalla Mimouna permit in Morocco, where the company has 75 per cent stake.

Referring to oil and gas activities in North African nations, Paul Welch, president and CEO of SDX, said that the company remain optimistic about further positive news flow as we move towards delivering the first gas from the licence before the end of 2018.

In 2017, the company was awarded gas discovery at KSR-14 and KSR-15 well on the Sebou area in Morocco. In 2016, SDX Energy and Dana Petroleum commenced drilling operations on its high-impact exploration well on Bakassi West in Cameroon, Central Africa’s major oil and gas project.

SDX Energy's Kelvin-1X well disappoints in Egypt - WORLD OIL

MAY/22/2018

LONDON -- SDX Energy Inc., the North Africa focused oil and gas company, announces that the Kelvin-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator) has been drilled to a TD of 8,075 ft, encountering 606 net ft of high-quality reservoir interval in the Abu‐Madi formation, with an average porosity of 21%. However, the sands had low gas saturation and were not deemed to be commercial.

The well will now be plugged and abandoned, and the rig will move to the site of the next drilling location on the South Disouq licence, the SD-4X appraisal well.

Following the April 2017 SD-1X discovery on South Disouq, SDX targeted two near-field prospects, Ibn Yunus, where the Company has recently announced a significant discovery, and Kelvin. The Kelvin-1X well was located structurally updip of the SD-1X discovery and thought to potentially be connected to the original SD-1X structure by a continuous gas bearing section. However, the identified layer appears to be separated from the original discovery and contains gas with non-commercial saturations. The Company is now focused on completing the development at SD-1X and bringing both discoveries on stream as quickly as possible, with first gas prior to year-end 2018.

SDX reports gas discovery in Egypt - OIL & GAS JOURNAL

HOUSTON, MAY/18/2018

SDX Energy Inc., London, expects to start production by year end from a natural gas discovery made by its Ibn Yunus 1X well at South Disouq, Egypt (OGJ Online, Feb. 21, 2018).

On test, the well flowed at a stabilized rate of 39.3 MMscfd on a 32/64-in. choke, limited by surface facilities.

The well, drilled to 9,608 ft, encountered 100.8 ft of net natural gas pay in the Upper Miocene Abu Madi formation. Average porosity of the pay section is 28.5%.

SDX operates the South Disouq concession with a 55% interest. IPR Energy Resources Ltd., Irving, Tex., holds 45%.

Partners commit to drill at South Ramadan offshore Egypt - OFFSHORE MAGAZINE

MAY/17/2018

LONDON – An appraisal well will spud by mid-year on the South Ramadan license in the Gulf of Suez offshore Egypt, according to partner SDX Energy.

This will be up-dip from one of the previous producing wells in the field. 

Total cost of the work program this year will be around $23.5 million, including some platform remediation work and a well workover, both dependent on the success of the appraisal well.

Spud of Kelvin-1X exploration well, Egypt - SDX ENERGY INC.

8 May 2018
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that it has spud its Kelvin-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator).

Kelvin-1X is the second well in the Company's 2018 four well exploration and appraisal drilling campaign at South Disouq and is designed to prove up what the Company believes to be potentially material upside within the concession. 

The well is anticipated to take up to 30 days to drill and if successful, will be completed, flow tested and connected to the infrastructure being developed at the SD-1X discovery location.

Oil discovery at Rabul 4 Well, West Gharib Concession, Egypt - SDX ENERGY

24 April 2018

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that an oil discovery has been made at its Rabul 4 Well in the West Gharib Concession in Egypt (SDX 50% Working Interest & Joint Operator). 

The well was drilled to a total depth of 5,250 feet and encountered approximately 43 feet of net heavy oil pay across the Yusr and Bakr formations, with an average porosity of 16%. Further evaluation of the discovery is ongoing, after which the Company expects the well to be completed as a producer and connected to the central processing facilities at Meseda. 

Following completion of the Rabul 4 well the Company will move on to the Meseda field, where it will drill two development wells. 

Gas discovery at Ibn Yunus-1X well, Egypt - SDX ENERGY INC.

12 April 2018

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that a gas discovery has been made at its Ibn Yunus-1X exploration well at South Disouq, Egypt (SDX 55% working interest and operator). 

The Ibn Yunus-1X well was drilled to a total depth of 9068 feet and encountered 100.8 feet of net conventional natural gas pay in the Abu Madi horizon, which had an average porosity in the pay section of 28.5%. The well came in on prognosis but with a reservoir section that was of better quality and thicker than pre-drill expectations. 

The well will be completed as a producer in the Abu Madi section and then tested after the drilling rig has moved off location. The testing is anticipated to commence between 30 and 45 days after the rig departs, depending on the availability of testing equipment. After a successful test, it is anticipated that the well will be connected to the infrastructure located adjacent to the original SDX discovery in the basin, SD-1X, where production start-up is anticipated in the second half of 2018. 

South Ramadan group to seek rig for development drilling - OFFSHORE MAGAZINE

March/29/2018


LONDON – SDX Energy has issued an update on operations at the South Ramadan concession in the Gulf of Suez offshore Egypt.

The partners have completed the final sub-surface technical work in connection with an evaluation of development options.

They have opted to drill a development well up-dip of one of the previous producing wells on the field. Depending on rig availability, this will be drilled either early in the current quarter or late in 3Q 2018.

Total cost of the 2018 program will be around $23.5 million including platform remediation work and a well workover (both dependent on a success outcome of the development well).

Spud of Ibn Yunus-1X well, Egypt - SDX ENERGY

26 March 2018 

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that it has spud its Ibn Yunus-1X exploration well at South Disouq, Egypt. 

The Ibn Yunus-1X well, anticipated to take approximately 30 days to drill,will be targeting the same conventional natural gas bearing Abu Madi intervals discovered in the SD-1X well in April 2017. This is the first of a planned four well program on the South Disouq concession. The Ibn Yunus-1X well will be followed by two appraisal wells (SD-4X and 3X) in the original SD-1X structure which, if successful, will be used as producers thereby completing the base case development plan for the new field. The Company, in its technically approved development plan by the Egyptian authority,forecasts a plateau rate from the SD-1X field of 50 million standard cubic feet per day ("MMscf/d") of conventional natural gas (SDX 55% working interest). However, with any exploration success,the field plateau rate could potentially increase up to 100 MMscf/d. Start-up of production at South Disouq is expected to commence in H2 2018. The final well in the program, Kelvin-1X, will be an exploration well which, if successful, would be tied into the facilities located at the SD-1X field. The Kelvin-1X exploration well is targeting the same package of sands found to be productive at the SD-1X location but in a geologic structure up-dip of SD-1X, thereby reducing the level of risk and uncertainty when compared to a conventional exploration well. 

SDX Energy strikes oil in Egypt's West Gharib Concession - WORLD OIL

MARCH/14/2018

LONDON -- SDX Energy Inc., the North Africa focused oil and gas company, is pleased to announce that an oil discovery has been made at its Rabul 5 well in the West Gharib Concession in Egypt (SDX 50% working interest and joint operator).

The well was drilled to 5,280 ft TD and encountered approximately 151 ft of net heavy oil pay across the Yusr and Bakr formations, with an average porosity of 18%. Further evaluation of the discovery is ongoing, after which the Company expects the well to be completed as a producer and connected to the central processing facilities at Meseda.

Following completion of the Rabul 5 well the Company will move on to the Rabul 4 location, the second of two appraisal wells planned for the Rabul feature this year.

SDX Energy pursues Egypt, Morocco development in 2018 - OIL & GAS JOURNAL

HOUSTON, FEB/21/2018
Tayvis Dunnahoe

SDX Energy Inc. anticipates spudding the Ibn Yunus-1X exploration well at South Disouq, Egypt, in mid-March. The operator signed a contract with Sino-Tharwa Drilling Co. for the ST-6 rig, which includes agreement for four additional firm wells. The rig is on location in Egypt’s Western Desert completing drilling for a separate operator and is expected to be released this month.

SDX expects a 30-40 day drilling window targeting the Abu Madi conventional gas interval discovered in April 2017 in the SD-1X well, which tested 25.8 MMcfd and 43 b/d of condensate on a 48/64-in. choke (OGJ Online, Sept. 21, 2017). The Abu Maadi formation is at 7,100 ft. Once drilling is completed at Ibn Yunus-1X, the rig will move to the SD-1X discovery to drill two appraisal wells and then on to drill SDX’s Kelvin-1X exploration prospect.

The Ibn Yunus-1X and Kelvin-1X wells are targeting up to 150 bcf of gas and, if successful, SDX plans to tie back to the SD-1X processing facility.

SDX announces completing a number of projects in Egypt in 3Q2017, attributes rise in profit to Circle Oil acquisition - ENTERPRISE

Wednesday, 22 November 2017

SDX Energy announced completing a number of projects in Egypt during 3Q2017. The company concluded a twelve-well program at North West Gemsa, which should allow it to achieve its 5,000 boepd target for the year, in addition to finalizing the expansion of a processing facility at its Meseda project by increasing treatment capacity to 20,000 bfpd from 10,000. In South Disouq, SDX is in talks with Natural Gas Holding Company to drill an additional two wells and add 10 km of pipe to the main export line, which it hopes to complete in 1H2018. SDX has also completed development plans for its South Ramadan concession and should begin moving forward on the project soon. The company attributed the rise in its 3Q2017 net revenues to USD 10.1 mn, from USD 2.9 mn in 3Q2016 to “the acquisition of the Egyptian and Moroccan businesses of Circle Oil” in January this year.