SDX Achieves 'Strong' Flow Test Result From Moroccan Well



SDX Achieves 'Strong' Flow Test Result From Moroccan Well
North Africa focused oil and gas company SDX Energy achieves a 'strong' flow test result from its SAH-2 well on the Sebou permit in Morocco, says the company's president and CEO, Paul Welch.

North Africa focused oil and gas company SDX Energy Inc. has achieved a ‘strong’ flow test result from its SAH-2 well on the Sebou permit in Morocco, according to the company’s president and CEO, Paul Welch.

The well was tested at a restricted rate on a 40/64 inch choke, achieving an average flow rate of conventional natural gas of 12.9 million standard cubic feet per day (mmcfpd), with a maximum flow rate of 13.5 mmcfpd.

“This positive outcome underpins our guidance of gross production target of 8-10 mmcfpd of conventional natural gas in Morocco by the end of 2018,” Welch said in a company statement.

The well will now be shut in for several days for a pressure build-up, after which it will be connected to local infrastructure and placed on test production.

Oil and gas analysts at GMP FirstEnergy described market reaction to the flow test result as ‘positive’, highlighting that it was the company’s strongest flow rate in Morocco to date.

In addition to news on SAH-2, SDX announced that the LNB-1 well on the Lalla Mimouna permit in Morocco has been spud. LNB-1 is the eighth well in the company's nine well campaign in Morocco, and the first of two remaining exploration commitment wells to be drilled on the permit in 2018.

The well is anticipated to take between 15-20 days to drill and if successful it will be completed, flow tested and connected to existing infrastructure.

"The LNB-1 exploration well represents an excellent exploration opportunity for us in Morocco,” Welch said in a company statement.

“Success in LNB-1 will open up a large section of new acreage for development in the Gharb Basin, potentially allowing us to expand our overall production footprint in Morocco. We look forward to updating our stakeholders on the result in due course,” he added.

SDX holds a 75 percent working interest in both the Sebou permit and Lalla Mimouna permit.



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