SDX Energy Inc., the North Africa focused oil and gas company, has reported a gas discovery at its SAH-2 well on the Sebou permit in Morocco.

The SAH-2 well was drilled to a total depth of 1,304 meters and encountered 5.2 meters of net conventional natural gas pay across two zones in the Guebbas and Hoot formations with an average porosity in the pay section of 33%. The well came in on prognosis but with a reservoir thickness above pre-drill expectations.

The well will now be completed, tested and connected to existing infrastructure. SDX expects to provide a further update on testing results in early April.

Paul Welch, President and CEO of SDX, commented:
"We are very pleased to be able to announce another discovery, the fifth from seven wells drilled to date in our nine well Moroccan campaign.

This was also the first well in the Gharb basin that was successfully drilled using downhole directional tools which allowed us to penetrate the crest of two individual targets with a single well-bore.  We will use these tools when drilling our next well, LNB-1, an exploration well in our Lalla Mimouna concession, for a similar reason.  By successfully targeting the crests of specific horizons, we now have the ability to improve the recovery efficiency from individual wells.

I look forward to updating all our stakeholders on the production testing results of the SAH-2 and the spud of the LNB-1 in due course."