SDX Energy announced that it has started spudding MSD-24 infill development well located in the Meseda field.
This well is the fourth in its development drilling campaign comprising 13 wells on the Meseda and Rabul oil fields in West Gharib concession in the Egyptian Eastern Desert. When it is on-line, it is expected to produce around 300 barrels per day (bbl/d)
SDX said that MSD-24 drilling is targeting the ASL formation reservoir and it is expected to take around six weeks to complete and tie-in to the existing infrastructure. It added that the drilling and tie-in works could cost $0.9 – $1 million.
Regarding the previous wells, the company highlighted that the first two wells in the campaign which are MSD-21 and MSD-25 have been successfully tied in and started production. While the well MSD-20 operation took more time than expected due to troubles with the rig performance used in this well.
SDX noted that the rig is replaced and it is expected to announce the well’s spudding results in the next three to four weeks. It should be noted that the campaign aims to increase production to c.3,500 – 4,000 bbl/d by early 2023.
Mark Reid, CEO of SDX, commented “I am pleased that we have spud MSD-24, the fourth well in the campaign and that we will now be drilling simultaneously with two good quality rigs. West Gharib is a very high margin asset in our portfolio with a Netback of $37/bbl at $71/bbl Brent in FY2021. Now that we have a second rig in operation, the 13-well campaign can be accelerated to allow us to take advantage of the current high oil price. I look forward to updating the market further as the campaign progresses.”