Continental Focus, International Reach

SDX Energy Updates MA-1X Gas Discovery and MSD-23 Drilling Progress

Friday, July 15, 2022

SDX Energy has provided an update on the testing of its gas discovery at the MA-1X well that targeted the Mohsen prospect, within the Exploration Extension Area of South Disouq, Egypt. SDX also completed drilling at the MSD-23 infill development well on the Meseda field in its West Gharib concession.

The MA-1X discovery, announced on 8 June, is currently in the process of being tested.  As expected, the well test showed good flow rates of c. 8.0 MMscf/d commensurate with the high quality Kafr El Sheikh Formation reservoir around the well bore, which has an average porosity of 31.9%.  However, the well-head pressure decline observed over a three-day production test was higher than expected, which could indicate that a lower volume of gas is connected to the MA-1X well bore compared to pre-drill estimates.  Whilst this does not change the Company’s estimate of overall gas in place in the discovery, it may indicate that there is a change in facies closer than expected to the MA-1X well bore that could be compartmentalizing the gas to some extent.

The Company is currently undertaking a pressure build up test and will obtain the relevant data from down hole gauges early next week, the results of which will be available in the coming weeks. Additionally, the existing 3D seismic data around the discovery will be reprocessed and re-interpreted. The final results of this work are expected to be available in three months’ time and will inform the requirements to commercialize the discovery, which may necessitate more wells than the two wells initially estimated to produce the gas.

Mark Reid, CEO of SDX, commented: “The higher-than-expected pressure decline from the MA-1X test is a surprise and inconsistent with what we have seen in our analogous Ibn Yunus wells.  We will work closely with our partners over the next three months interpreting the test results and reprocessing and re-interpreting the existing 3D seismic over the discovery.  At the end of this process, we will update the market as to the proposed commercialization strategy for the discovery which may mean that an additional well or wells could be required to produce out this discovery.”

On its infill development well at West Gharib, SDX states the MSD-23 encountered the primary top Asl Formation reservoir at 3,909 feet MD (3,112 feet TVDSS) and reached a TD of 4,449 feet MD on 10 July. The well encountered 131.5 feet of good-quality, net oil pay sandstone, with an average porosity of 24.1% in the Asl Formation reservoir. The net pay was split across 3 separate sand units, with the upper-most sand covering 7 feet of net pay with 27.4% porosity. This upper oil-bearing sand is at virgin pressure meaning that it has not been depleted by any surrounding wells and it also represents an unanticipated upside as it was not included in pre-drill estimates.  MSD-23 will now be tied-in to the existing facilities and flow tested.

MSD-23 is the fifth well in a fully funded, 13-well development campaign on the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. Operations at the third well, MSD-20, are expected to recommence later this month following the replacement of a rig which had experienced operational issues. The development drilling campaign is aimed at growing gross production to c.3,500 – 4,000 bbl/d by early 2023. The rig will now move to the next well in the campaign.

Reid commented: “The logs from MSD-23 indicate an excellent result with the virgin pressure upper sand of particular interest. The well will now be connected to our infrastructure and flow tested and we will update the market on the results of this in the coming weeks. With MSD-23 coming online we expect to increase gross production to 2,300 – 2,400 bbl/d and we are anticipating further increasing production through the completion of operations at MSD-20 and the drilling of the eight remaining wells in the campaign over the next year. I look forward to updating the market further as the campaign progresses.”


« GO BACK