Continental Focus, International Reach

SDX Keeps Active Egypt Program in Q2

Monday, August 28, 2017

SDX Energy undertook a tender to secure a work-over rig and associated services to cover up to 12 wells on its NorthWest Gemsa concession in Egypt during Q2. The company said in its recent release that it secured a local rig and the work-over program, which is focused on ESP installation and maintenance, commenced with the objective of maintaining average production at around 5,000 boepd for 2017. Unitization talks with the offset operator are temporarily on hold and are expected to recommence in Q4 2017.

In Q2 2017, two wells in the Meseda field had work overs performed consisting of tubing and pump maintenance aimed at ensuring future production uptime. In addition, the expansion of the central processing facility commenced with the arrival of a new two-phase separator. Installation is anticipated to complete during Q3 2017 allowing treating capacity to increase from 10,000 bpd to 20,000 bpd. Once completed, additional well work-overs will be undertaken to upgrade existing ESPs which are anticipated to increase well production rates. The tender for the ESP provider has been undertaken and the award is expected in Q3 2017. The production increase related to the facilities and ESP upgrades is expected in Q4 2017.

In South Disouq during Q2 2017 the company drilled the SD-1X discovery well, conducted well test operations and successfully flowed natural gas at a stabilized rate of 25.8 Mmcf/d on a 48/64″ choke. This flow rate significantly exceeded initial expectations and was limited by the surface facilities. The well was subsequently shut in for an initial build-up, after which a series of additional flowing and shut-in periods were undertaken and fluid samples taken.

In the South Ramadan development concession in Q2 2017, SDX, along with its partners, conducted an extensive review of the prospectivity of the block’s potential. A commercial review of development options was then initiated which is anticipated to conclude during Q3 2017. Results of this exercise, combined with a response from the Egyptian authorities on the extension request to complete the drilling commitment in 2018, will determine the way forward in this concession for the remainder of 2017.


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