Mr. Paul Welch reports
SDX ENERGY - POSITIVE DEVELOPMENT WELL RESULTS BOOSTS PRODUCTION FROM NW GEMSA, EGYPT AL AMIR S.E. #23 DEVELOPMENT WELL
SDX Energy Inc.'s Al Amir SE 23 development well in Northwest Gemsa has encountered significant oil-bearing reservoir sections in both the Kareem Rahmi and Shagar formations and will be completed as a producer in the Shagar.
Al Amir SE-23 well
Al Amir SE-23 (AASE-23) was drilled to a depth of 9,900 feet, where both the Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 23 feet of net Shagar oil pay and 28 feet of net Rahmi oil pay. The well has been completed as an oil producer in the Shagar and has flowed on test light 42.2-degree API oil at a rate of 3,860 barrels of oil per day with 2.55 million standard cubic feet per day of associated gas. The well will be placed in production in the coming days as soon as the completion rig has moved off location.
Commenting, Paul Welch, chief executive officer of SDX Energy, said:
"The AASE23 well results were excellent, and the well is expected to be another strong producer from the Shagar. Drilling costs for the AASE-23 were down by 30 per cent on a comparative basis with previous wells, making this well both a technical and also commercial success. The AASE-23 is the first of two development wells to be drilled in the field this year. The drilling rig has now moved to the next location (AASE-24), and we anticipate drilling to commence in the next few days. The results of these two development wells, combined with a five-well workover program, will allow us to maintain production at these increased rates for the remainder of 2016. Field production is currently 7,535 barrels of oil per day and 8.9 million standard cubic feet per day."
The Northwest Gemsa concession is located onshore on the west side of the Gulf of Suez, approximately 300 kilometres southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north. SDX has a 10-per-cent working interest in the Northwest Gemsa Concession.
The company's current net production in Egypt is 1,666 barrels of oil equivalent per day, with 903 barrels of oil equivalent per day net from NW Gemsa and 763 barrels of oil per day net from Meseda.
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