SDX Expects Continuation of Plateau Production Rates

SDX Expects Continuation of Plateau Production Rates

SDX Energy company said that gross plateau production at South Disouq is expected to be maintained at 50 million standard cubic feet equivalent per day (mmscfe/d) for another 18-24 months until mid-2023 with the probability to be extended to mid-2026 depending on the results of planned future exploration drilling, according to a press release issued by the company.

CEO of SDX, Mark Reid, commented that “With Sobhi, we expect to extend our gross 50 mmscfe/d plateau production by 18-24 months to 2023 and, with some follow on drilling success, this could be extended further into 2026.”

The company mentioned that these predictions are a result of the discovery of Sobhi well which is estimated to generate about $25 million of un-discounted post-tax cash flow equivalent to $1.04 per one thousand cubic feet (mcf).

SDX added that it planned to drill from eight to ten wells in West Gharib concession during the period between 2021 and 2023 at a gross cost of approximately from $8 million to $10 million with potential of gross production increase from 3,200- 3,300 billion barrel per day (bbl/d) to 4,000 bbl/d by 2022. This incremental production at West Gharib may achieve about $5-6 million in low risk, un-discounted post-tax cash flow net.

Reid added that “Sobhi has also helped us identify approximately 100 bcf of follow on, de-risked, incremental prospectivity in the South Disouq concession.”

“Finally, we are also looking forward to commencing our drilling campaign in West Gharib next year where we will be aiming to increase production in the Meseda and Rabul fields to approximately gross 4,000 bbls/d by 2022,” he concluded.


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