SDX Energy is in talks with the Egyptian Natural Gas Holding Company (EGAS) to start gas production from the recent discovered well in South Disouq Concession by the fourth quarter of 2018, Al Mal News reported. The new well is expected to bring initial 45mcf/d of gas to production, while the total costs of the well are so far estimated at around $19m, SDX Energy’s General Director, Ahmed Moaaz, stated.

The company discovered and disclosed its SD-1X well in May, which derisked SDX Energy’s Gross Prospective Resources, according to the company’s press release.

Moreover, SDX Energy is holding discussions with Petrojet to construct pipelines and facilities that would link the new discovery to the national gas grid, Moaaz said. The company is also assigning Egyptian firms to execute the drilling and development operations.

Initial development operations performed at SD-1X will help in bringing the field to the close national gas distribution system, which will result into early cash and eventually help future discoveries to be connected in short time.