The MENA-focused oil and gas company, SDX Energy, encountered commercial quantities of natural gas at its OYF-2 well in Morocco, according to Pipeline Oil and Gas News.

SDX, which owns a 75% stake in the area, drilled well OYF-2 at a depth of 1,210 meters and found an excess of commercial natural gas than previously predicted, beating forecasts. The discovery confirms that the company’s core productive area extends to the north, SDX said.

“We have a particularly busy year ahead with the drill bit, giving us the opportunity to increase significantly the company’s reserves life,” said Mark Reid, CEO of SDX. “OYF-2 in Morocco is a very positive start…  With the planned follow on development well, we now have the potential to increase our total reserves in Morocco to approximately three to four years of customer demand with our gas being sold under five and ten year fixed priced contracts at an average gas price of circa $11/mcf.”

According to the company, the recoverable natural gas approximately reached 1.3 to 1.9 billion cubic feet (bcf), which is expected to be further tested in February. The discovery will be linked to the company’s infrastructure with an estimated cost of approximately $2 million net to SDX.

The discovery has eliminated a further 0.5 to 0.10 bcf of Prospective Resources2, which it shall recover with a well development in the future.