SDX Energy has announced that it has begun drilling its SD-12X (Sohbi) well at South Disouq in Egypt, with potential to increase production to 50 million standard cubic feet per day (mmscf/d) by 2024, according to a press release.
Sobhi is planned to reach its targeted drilling depth of around 2,300 meters in late April, with a gross P50 unrisked prospective resources of c.33 bcfe. Sohbi’s primary target is in the same Kafr el Sheikh formation that the company’s existing Ibn Yunus well is already producing from.
If this were to be successful, the Sohbi well would be tied in during 2021 via a 5.8 kilometre tie-in to the Ibn Yunus-1X location where an existing flow-line connects to the South Disouq Central Processing Facility. This would cost an estimated $3.5 million.
SDX will drill the Sohbi well at a 100% working interest for an estimated gross dry hole cost of $2.3 million, which will be paid over the coming three months.
In light of the upcoming oil crisis, SDX believes that they are in a strong position to cope with the fall in price, noting that the company remains well funded with $11.0 million as of December 2019 and $7.5 million of debt available in the European Bank for Reconstruction and Development (EBRD) credit facility.