SDX Energy today provides an update on well-testing operations at the recent SD-5X (Warda) discovery well (SDX Working Interest: 36.85%) 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 stabilised rate of 8-9 MMscf/d.

SD-5X will now be tied-in via a short connection (600 metres) 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 maximise 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).

Mark Reid, CEO of SDX, commented:
"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."

KeyFacts Energy: SDX Energy Egypt country profile