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Friday, April 8, 2022
SDX Energy announced the spudding of the MSD-20 infill development well on the Meseda field. This well is the third in a fully funded 13-well development drilling campaign on the Meseda and Rabul oil fields in the West Gharib concession in the Egyptian Eastern Desert. The campaign is aimed at growing production to c.3,500 – 4,000 bpd by early 2023.
The MSD-20 infill development well on the Meseda Field spud on April 5 and is targeting the Asl Formation reservoir at approximately 3,180 ft TVDSS. It is estimated that the well will take around six weeks to drill, complete and tie-in to the existing infrastructure. MSD-20, with an expected cost to drill and tie in of $0.9-US$1.0 million (gross), is anticipated to come on-line and produce at around 300bbl/d (gross), which would immediately contribute to Group cashflow and result in a payback period of five to six months at current oil prices. The Company expects to update the market on its result in mid-May.
The first two wells in the campaign, MSD-21 and MSD-25, have been tied-in and are contributing to production.
Mark Reid, CEO of SDX, commented: “I am pleased that we have spud MSD-20, the third well in the campaign, so quickly after bringing MSD-21 and MSD-25 onto production, which is testament to the efficiency of the operations team in country and bodes well for the rest of the campaign. West Gharib is a very high margin asset in our portfolio with a Netback of $37/bbl at $71/bbl Brent in FY2021. Given this, it is our intention to execute this 13-well campaign as quickly as possible to significantly boost production and cashflow from these fields. In line with this aim, a second rig has been contracted and is currently on location at the next well, MSD-24, which should be operating soon. I look forward to updating the market further as the campaign progresses.”
The company also updated its well-testing operations at the recent SD-5X (Warda) discovery well in the South Disouq Development lease. The well was perforated in the basal Kafr El Sheikh gas sand and was tested on 30 March 2022, opening the well for a two-hour clean-up period only. The well flowed at a controlled rate of 10.4 MMscf/d on a 26/64” choke. When connected, it is anticipated that the well will produce at an optimum stabilized rate of 8-9 MMscf/d.
SD-5X will now be tied-in via a short connection (600 meters) to the SD-4X flow-line and into the CPF. It is estimated that the tie in cost will be c.US$0.5 million (gross) and that SD-5X will be on production in June 2022, when the well will be subject to a longer rig-less test. By conducting the longer test after tie-in, SDX will maximize saleable production from the well. The results of the longer test will be the subject of a further update to the market in due course.
With the completion of SD-5X operations, the rig is now moving to the second well in the three well campaign, SD-12_East on the Sobhi Field (with a planned spud date in mid-April). The third well in the campaign will be the MA-1X well targeting the Mohsen prospect (planned spud in mid-to-late May).
Reid stated: This is a very good result and a pleasing start to our 2022 drilling campaign, which aims to accelerate cash flow and exploit the continued potential that we see in the South Disouq area. The tie-in of the well is short and low cost, and the well is expected to be on production in June. I look forward to updating the market on the longer-term test in the coming months and on the progress of the other wells in our 2022 campaign.”
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