British company announces discovery of new gas production area in Morocco

A successful two-well drilling campaign by SDX Energy in Morocco has uncovered a new gas-producing area. In Morocco, additional wells will be drilled in 2023 to boost production and revenue growth.

The company reports two discoveries from the recently finished SAK-1 and KSR-20 wells in Morocco.

Testing results show that volumes will be above the pre-drill P50 estimate of 0.44 bcf for the SAK-1 well, which has already been connected to the company’s infrastructure.

The well is significant because it creates a new production zone to the northwest of the company’s historic producing zone, and the SAK cluster has been identified as the location of several other follow-on prospects.

“The KSR-20 well has also discovered gas in this well-known area and is currently undergoing a pressure build-up test. The well will be put on production as soon as permitting and tie-in are completed and an announcement on anticipated in-place volumes will be made in due course,” the company said in a press release.

The company intends to increase its drilling operations in 2023 as a result of these successes and the discovery of additional prospects with similar drillable geological features. The portion of Moroccan land covered by high-quality 3D seismic has so far yielded over 70 prospects, 25 of which have been high-graded, totaling about 20 bcf P50 EUR unrisked.

‘We are pleased with the results of both the SAK-1 and KSR-20 wells. In addition to opening a new play fairway with numerous follow-on drillable targets, the wells will contribute immediately to production and revenue growth in an area where demand and gas pricing is robust,” Mark Reid, CEO of SDX said.

“Morocco remains a key area of potential growth for SDX and we look forward to planning further drilling in 2023. I would also like to add my thanks to our partner ONHYM for the provision of the excellent drilling team and the ONHYM 525 rig which was used to great effect during the campaign.”