As part of a 12 well development campaign, SDX Energy started the initial drilling of the MSD-21 infill development well on the Meseda field in Egypt, the company announced.
This well is the first, in a fully funded, 12 well development campaign on the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert.
The campaign aims to boost production to reach c. 3,500 – 4,000 barrels per day (bbl/d) by early 2023, compared to the current c. 2,400 bbl/d.
SDX spudded the MSD-21 development well, in which it owns 50% working interest on October 16th. The statement from SDX also elaborated that the well has a $0.9-$1.0 million gross cost to drill and tie in, and that it is expected to come online and produce approximately gross 300 bbl/d, which would have immediate effect on the Group’s cash flow.
“In today’s higher oil price environment, I am excited to announce the spudding of the first well in a 12 well infill development campaign on our West Gharib oil fields in Egypt. With H1 2021 netback of US$33/bbl at US$65/bbl Brent, West Gharib is currently a very high margin asset in our portfolio, and the MSD-21, and subsequent wells will boost the production and cash flow from these fields in the coming months. I look forward to updating the market further as the campaign progresses,” SDX’s CEO Mark Reid stated.