SDX Completes Seismic Survey Onshore Egypt, Initial Data Encouraging
SDX Energy Inc. announced Monday that it has completed the acquisition of 115 square miles of 3D data on the South Disouq asset, located onshore the Nile Delta in Egypt, “safely, under budget and ahead of the anticipated schedule”.
The initial data set from the seismic survey is of “good quality” and “clearly indicates the presence of the prolific Abu Madi trend within the block,” along which large discoveries have been made in recent years, according to a company statement.
Data processing from the acquisition will commence immediately and is anticipated to take three months to complete. SDX Energy intends to use the processed data to build a prospect inventory with a view to selecting a location for a fully carried exploration well, which is “anticipated to be drilled in late 2016,” according to a brief research note from FirstEnergy.
“We are delighted that the seismic program has been completed early and we are excited to begin fully processing the data,” said SDX Energy CEO Paul Welch.
“The initial data set is of high quality and shows evidence on our block of the Abu Madi trend, along which operators have made large commercial discoveries in recent years. Additionally, this new data has allowed us to image deeper stratigraphy much better than originally anticipated which opens up a new range of potential targets within the block, several of which may be oil bearing,” he added.
Despite Welch’s optimistic claims, FirstEnergy stated that market reaction to SDX’s latest news was “neutral”.
SDX’s seismic survey commenced March 16 and was initially expected to take between three and four months to complete. The concession, which SDX holds a 55 percent operated working interest in, contains a mean gross resource estimate of 526 billion cubic feet of gas, according to a company statement.
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