SDX Energy plc has announced that it commenced drilling the Ksiri-21 (KSR-21) well in Sebou Central of the Gharb Basin in Morocco.

The vertical development well, KSR-21, would be drilled to a planned total depth of approximately 1,950 meters. Using existing 3D seismic, the well is targeting a well-defined prospect within the main Hoot formation, which is the main producing sand in the area.

SDX has drilled over 20 production wells in the same basin. As such, this new well presents a low-risk step-out location. The well can be immediately brought into production, supplying gas to existing customers, under the improved gas price announced on 5 June 2023.

“Commencement of drilling signifies an early milestone in SDX’s new roadmap in Morocco, which the Company will present imminently. As part of re-energizing the Company’s upstream production, we will assess the feasibility of drilling additional wells, back-to-back. This type of program would reduce capex per well, ensure operational efficiency, and prove sufficient reserves of ‘gas-behind-pipe’ to meet both existing and future demand,” said Daniel Gould, SDX Managing Director.

The Sebou Concession, located in the Gharb Basin, was acquired by SDX Energy in May of 2016 and 2D and 3D seismic surveys have been conducted over the majority of the Concession. Considering the current core area of production, SDX contributes in excess of 7.0 million standard cubic feet per day mmscfd (1,166 boepd). 27 wells have been drilled in that area since 2008, resulting in 22 discoveries.

Notably, SDX has a 75% operated working interest across the Moroccan portfolio, which includes the Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud exploration permits, plus a number of exploitation concessions containing the producing wells. SDX sells the gas produced by its Moroccan assets to eight customers at contracted prices of between $10-$12/Mcf.