SDX Energy announced in an official statement the commencement of production from its operated South Disouq concession in Egypt, as it has 55% of the working interest.

SDX added that gas has been flowing through the South Disouq Central Processing Facility (CPF) since November 7, 2019, pointing out that each of the four discovery wells have been hooked up to the CPF, tested during this period, and have produced at their expected rates of between 8 to 15 million standard cubic feet (mmscf/d).

Over the last three days, the CPF has been operating as expected, achieving an average gross production rate of 23 mmscf/d of gas and 120 barrels per day (b/d) of condensate, equivalent to approximately 24 mmscfe/d.

These initial flow rates are in line with the company’s expectations and testing will continue over the coming weeks, during which time the company will gradually ramp up production with a view to achieving its targeted plateau gross production rate of 50 mmscfe/d during the first quarter of 2020.

All gas production will be sold to the Egyptian Natural Gas Holding Company (EGAS) at a fixed price of $2.85/mcf, with the Egyptian government’s entitlement share of gross production equating to approximately 51%, the company reported.