SDX Energy, the MENA-focused energy company provides an update on the testing of its gas discovery at the MA-1X well that targeted the Mohsen prospect, within the Exploration Extension Area of South Disouq.

The MA-1X (SDX WI: 67%) discovery, announced on 8 June, is currently in the process of being tested. As expected, the well test showed good flow rates of c. 8.0 MMscf/d commensurate with the high quality Kafr El Sheikh Formation reservoir around the well bore, which has an average porosity of 31.9%. However, the well-head pressure decline observed over a three-day production test was higher than expected, which could indicate that a lower volume of gas is connected to the MA-1X well bore compared to pre-drill estimates. Whilst this does not change the Company's estimate of overall gas in place in the discovery, it may indicate that there is a change in facies closer than expected to the MA-1X well bore that could be compartmentalising the gas to some extent. The Company is currently undertaking a pressure build up test and will obtain the relevant data from down hole gauges early next week, the results of which will be available in the coming weeks. Additionally, the existing 3D seismic data around the discovery will be reprocessed and re-interpreted. The final results of this work are expected to be available in three months' time and will inform the requirements to commercialise the discovery, which may necessitate more wells than the two wells initially estimated to produce the gas.

Mark Reid, CEO of SDX, commented:
"The higher-than-expected pressure decline from the MA-1X test is a surprise and inconsistent with what we have seen in our analogous Ibn Yunus wells. We will work closely with our partners over the next three months interpreting the test results and reprocessing and re-interpreting the existing 3D seismic over the discovery. At the end of this process, we will update the market as to the proposed commercialisation strategy for the discovery which may mean that an additional well or wells  could be required to produce out this discovery."

KeyFacts Energy: SDX Energy Egypt country profile