South Disouq gas block : SDX Energy begins drilling of Salah well

UK-based SDX Energy has started drilling of the SD-6X well (Salah well) at the onshore South Disouq gas block in the Nile Delta in Egypt.

The MENA-focused oil and gas company had a working interest of 55% in the South Disouq concession where it is partnered by US-based IPR Energy Group. Production from the South Disouq block began in November 2019.

SDX Energy expects the Salah well to reach its targeted depth of about 9,000 feet in late March/early April. The exploratory well is targeting gross P50 unrisked prospective resources of about 71 bcfe, as estimated by the company’s management.

The primary targets of the Salah well are in the same Kafr el Sheikh and Abu Madi formations where the existing four wells of the South Disouq gas block are already producing from.

On completion of the Salah well, the drilling rig will be taken to the site of the SD-12X well (Sobhi well) nearly six kilometres to the west, for targeting gross P50 unrisked prospective resources of about 33 bcfe.

The primary target of the Sobhi well is also in the Kafr el Sheikh formation at a depth of nearly 7,000 feet.

SDX Energy begins drilling of Salah well in the South Disouq gas block in Nile Delta, Egypt. Image courtesy of OpenClipart-Vectors from Pixabay.

SDX Energy said that if the drilling of the Salah and Sobhi wells are successful, then 8.0 kilometres and 5.8 kilometres, respective tie-ins are needed to the South Disouq Central Processing Facility to bring them into production.

The share of the UK oil and gas company’s in the tie-in cost are estimated at $2.5 million and $1.9 million respectively for the Salah and Sobhi wells.

SDX Energy said that it is looking into various development concepts based on the size of any discovery that is made. To produce 100% of the 71 bcfe gross P50 unrisked resources targeted in the Salah well, the UK oil and gas company said that two additional development wells would have to be drilled.

On the other hand, the 33 bcfe gross P50 unrisked resources targeted in the Sobhi well would possibly need the drilling of one more development well.

Mark Reid – CEO of SDX Energy said: “Salah and Sohbi are very exciting wells for the Company with the potential to more than double the reserves to be processed through the South Disouq gas processing facilities.  We now have three rigs drilling simultaneously in Egypt and Morocco and I look forward to providing further updates on these campaigns in due course.”