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North African oil and gas business SDX Energy has announced that development of South Disouq (SDX 55% working interest and operator) continues on schedule and on budget, with factory acceptance tests for the central processing facility and compressor, the first of three project milestones, now successfully completed.
Planning for the 12-well drilling campaign in Morocco (SDX 75% working interest and operator) has commenced with long lead items ordered, all key contracts finalised and drilling expected to commence in Q4 2019. The programme will be targeting 15 billion cubic fee (bcf) of gross unrisked prospective resources.
Gross production was in line with expectations.
Mark Reid, CFO and interim CEO of SDX, commented: 'SDX continues to focus on the successful delivery of its key operational targets at the South Disouq development in Egypt and the upcoming Morocco drilling campaign.
'We are pleased to report that good progress has been made on these initiatives and both remain on schedule and on budget. Once the South Disouq 3D has been interpreted, and after partner discussions, we will assess the potential for a drilling campaign and update the market in due course.
'Our cashflow and receivables collections remain strong and I am pleased to report that all of our existing and planned activities are fully funded from current cash, near-term cash flows and the undrawn EBRD facility. I look forward to providing further updates on our activities during the second half of 2019.'