The Ministry of Petroleum and Mineral Resources, represented by the Egyptian Natural Gas Holding Company (EGAS), approved to extend SDX Energy’s agreement in South Disouq concession for two years, an anonymous source told Al Mal.
SDX is still waiting to receive the final approval from the ministry and House of Representatives for its extension as it plans to start drilling two new wells in Disouq targeting production of 165 billion cubic feet (bcf) of natural gas.
The company requested the extension after its positive results in the concession in addition to studies which confirm the richness of this area with about 223 bcf of natural gas.
Additionally, the company has pumped expenditures worth $8 million on Disouq concession during the first nine months of 2020.
It should be noted that SDX recorded 50-51 million standard cubic feet equivalent per day (mmscfe/d) from its South Disouq concession by the end of September exceeding production guidance for 2020 of 47-49 mmscfe/d