SDX Energy is about to move into Egypt’s increasingly crowded gas sector. The company will spud its first well towards the end of Feburary in the South Disouq concession in the Abu Madi-Baltim trend, an area where 178bcm of gas has been found over 10 discoveries, Interfax Global Energy reported.
The company signed a letter of intent with rig contractor Sino Tharwa for the supply of its Sino-Tharwa 6 rig, Natural Gas World informed. Toronto and London-AIM listed SDX said it is also embarking on an upgrade of its existing Medesa production facility, also in Egypt.
SDX has managed to come through Egypt’s currency and economic crises unscathed. It has no debt, no overdue receivables, and has survived where other companies such as Circle Oil and Petroceltic have failed. SDX picked up Circle Oil’s Egyptian and Moroccan assets for $30m this week.
CEO of SDX Paul Welch said that the firm was “off to a very good start in 2017” following solid progress last year.