SDX Energy (AIM:SDX) announced on Tuesday the successful result of its Rabul-3 well in the West Gharib Concession in Egypt, of which the company holds a 50% interest in.
The Egyptian and Moroccan focused oil and gas firm drilled down to a depth of 5,129 ft, encountering around 116 ft of net heavy oil pay, across the Yusr and Bakr formations.
The Yusr and Bakr formations were reported to be ‘of excellent reservoir quality’ with an average porosity of 21%, this morning’s statement outlined.
The well will be completed as a producer later this month, connected to the central processing facilities at Meseda, SDX explained.
As a result, the well is expected to be brought on-line at an average stabilised rate of around 300 barrels of oil per day, which the group states is at the upper end of pre-drill expectations.
Shares in SDX Energy were trading 3.28% higher at 15.75p during Tuesday trading.
SDX said the well provides further support to its FY 2020 gross production guidance of 3,200 - 3,300 barrels of oil per day from the Meseda field.
"We are very pleased to announce this latest result in our low cost Meseda/Rabul area, which, thanks to its close proximity to existing infrastructure, will be contributing to cash flow in the coming weeks,” said Mark Reid, Chief Executive of SDX.
He added, “Even at our $55/bbl long-term planning oil price, approximately 80% of 2020 and 90% of 2021 forecast cash flows will come from our fixed price gas businesses in Egypt and Morocco and accordingly we remain strongly positioned to weather the current fall in oil prices."
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