KSS-2 Well in Morocco Yields No Commercial Discoveries
North Africa focused oil and gas company SDX Energy Inc has revealed that the KSS-2 well on the Sebou permit in Morocco has not made any commercial discoveries.
The well was drilled to a total depth of 4,242 feet and encountered 26 net feet of ‘high quality reservoir interval’ in the Gaddari and Guebbas sequences with an average porosity of 30 percent. However, whilst the intervals came in on prognosis, SDX said they had low gas saturation and were not deemed to be commercial.
KSS-2 is the sixth well in the company’s current nine well campaign, of which four wells have yielded commercial discoveries. The result of the KSS-2 well is not expected to impact the company’s previously announced planned production increase in Morocco in 2018.
“Whilst the KSS-2 well was not a commercial success, we are viewing this one result in the context of what is already a very successful drilling campaign with four out of six discoveries to date,” SDX President and CEO, Paul Welch, said in a company statement.
“Whilst KSS-2 was not successful, our belief is that this result proves that the main bounding fault provides a good seal and therefore gives us a further confidence in the forthcoming prospects. We are looking forward to drilling the final three wells in this program and reporting on their results in due course,” he added.
Oil and gas analysts at GMP FirstEnergy described market reaction to the latest development as ‘neutral’.
“The drilling campaign has yielded four good well results so far…In addition, the resources targeted by the KSS-2 well were small and immaterial to our valuation,” the analysts said in a brief research note sent to Rigzone.
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