SDX to abandon ELQ-1 well

SDX Energy, the North Africa focused oil and gas company, is abandoning its ELQ-1 well in the Gharb Centre permit in Morocco after deciding the intervals were not sufficiently commercial.

The well was drilled to a total depth of 1,484 metres and has encountered 22.6 net metres of reservoir interval and two metres of marginal net conventional gas pay, in the Hoot formation.

The well will be plugged and abandoned and the drilling rig will move to the ONZ-7 development location.

SDX expects flow testing at the KSR-16 well in Morocco to commence early next week.

It has also been granted a four-month extension to its Lalla Mimouna permit, through to 22 July 2018. This will allow the company sufficient time to evaluate the results of its upcoming exploration drilling campaign on the permit, which is expected to take place in March 2018.

Paul Welch, president and CEO of SDX, said: "Despite the result at ELQ-1, we remain very upbeat about the remainder of our Moroccan drilling campaign, which has already yielded discoveries from the first three of this nine well campaign. It is important to note that this well is also the only one in the current programme drilled using legacy low-resolution 3D data, acquired from the previous operator. It was an important test that has strengthened our belief in the need to acquire high resolution 3D seismic data, that we have successfully used in our first three wells, across all of our concessions of interest.

"As previously mentioned, a new high-resolution 3D seismic program, in the Gharb Centre concession, has been awarded and the acquisition is on track to begin in the second quarter of 2018. The result of this survey will double the area covered by high resolution 3D data, providing significant additional potential for prospect delineation. We remain on track to achieve our target of increasing gas sales volumes in Morocco by up to 50% and we look forward to updating the market on this in due course."