SDX Energy Inc. (“SDX” or the “Company”) (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt & Cameroon, is pleased to announce the Al Amir SE 23 development well in North West Gemsa, has encountered significant oil bearing reservoir sections in both the Kareem Rahmi and Shagar formations and will be completed as a producer in the Shagar.
Al Amir SE-23 Well:
Al Amir SE-23 (AASE-23) was drilled to a depth of 9,900 feet where both the Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 23 feet of net Shagar oil pay and 28 feet of net Rahmi oil pay. The well has been completed as an oil producer in the Shagar and has flowed on test light 42.2⁰ API oil at a rate of 3,860 BOPD with 2.55 MMSCFD of associated gas. The well will be placed in production in the coming days as soon as the completion rig has moved off location.
Commenting, Paul Welch, CEO of SDX Energy, said:
“The AASE23 well results were excellent and the well is expected to be another strong producer from the Shagar. Drilling costs for the AASE-23 were down by 30%, on a comparative basis with previous wells, making this well both a technical and also commercial success. The AASE-23 is the first of two development wells to be drilled in the field this year. The drilling rig has now moved to the next location (AASE-24) and we anticipate drilling to commence in the next few days. The results of these two development wells combined with a 5 well work-over program will allow us to maintain production at these increased rates for the remainder of 2016. Field production is currently 7,535 Bopd and 8.9
The North West Gemsa concession is located onshore on the west side of the Gulf of Suez, approximately 300 km southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north. SDX has a 10% working interest in the North West Gemsa Concession.
The Company’s current net production in Egypt is 1,666 boepd with 903 boepd net from NW Gemsa, 763 bopd net from Meseda.