Page 17 - AfrOil Week 25

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM concession between 2021 and 2023 for a gross Mark Reid, CEO of SDX, commented:
cost of approximately $8-10mn (SDX: $4-5mn) “After analysing the results of the recent drilling
SDX Energy provides update with the potential to increase gross production successes in Egypt and Morocco, we are very
excited about the future prospectivity identified
from approximately 3,200-3,300 bpd to approx-
on drilling operations in imately 4,000 bpd by 2022. from the Sobhi well in Egypt and from LMS-2
After taking account of drilling and other in Morocco. With Sobhi, we expect to extend
Morocco and Egypt infrastructure tie-in capex, this incremental our gross 50 mcf per day plateau production
by 18-24 months to 2023 and, with some follow
production at West Gharib is expected to gen-
SDX Energy, the MENA-focused oil and gas erate approximately $5-6mn in low-risk, undis- on drilling success, this could be extended fur-
company, has provided an update on its opera- counted post-tax cash flow net to SDX. ther into 2026. Sobhi has also helped us identify
tions in Egypt and Morocco following the recent Sobhi is expected to commence production approximately 100 bcf of follow on, de-risked,
drilling successes, details of which are included in Q1-2021, after completion of the standard incremental prospectivity in the South Disouq
in some detail in a new corporate presentation Environmental Impact Assessment process, concession.
which is now available on its website. agreement of landowners’ compensation, “In Morocco, a successful test in LMS-2 could
Egypt: As a result of the Sobhi discovery in obtaining the necessary Military, Agricultural create 1.5 bcf [42.48 mcm] of 2P reserves and
South Disouq (SDX Working Interest: 55% and and Irrigation permits and completion of the simultaneously de-risk 6.0 bcf [169.9 mcm] of
operator), which SDX drilled at 100% Working pipeline tie-in. prospectivity in the same structure and a further
Interest, gross plateau production of approxi- Morocco: Post-drill analysis of the LMS-2 3.4 bcf [96.28 mcm] nearby, enabling us then to
mately 50mn cubic feet (1.42mn cubic metres) well at Lalla Mimouna (SDX Working Interest: investigate low cost, early monetisation options.
per day is now expected to be maintained for a 75% and operator) has identified similarities In addition, a successful LMS-2 test will help us
further 18-24 months until mid-2023 with the with the LAM-1 discovery made by the previous better understand an additional 25.5 bcf [722.1
potential for a further extension to mid-2026, operator of the concession which flowed gas and mcm] of prospectivity in multiple prospects
depending on the results of planned future condensate in 2015. identified across the broader Lalla Mimouna
exploration drilling. Subject to successful testing, management concession.
Management estimates that Sobhi will gener- estimates that LMS-2 could contain approxi- “Finally, we are also looking forward to com-
ate approximately $25mn of undiscounted post- mately 1.5 bcf (42.48 mcm) and has the potential mencing our drilling campaign in West Gharib
tax cash flow after capex to SDX, equivalent to to de-risk a further 6 bcf (169.9 mcm) in separate next year, where we will be aiming to increase
$1.04 per mcf. compartments within the same feature. production in the Meseda and Rabul fields to
After integrating the results of the successful Management also estimates that a further approximately gross 4,000 bpd by 2022.’
Sobhi well with the remapped 3D seismic over 3.4 bcf (96.28 mcm) of close by prospective SDX Energy, June 23 2020
the South Disouq concession, management esti- resources will be de-risked if LMS-2 tests suc-
mates that incremental prospective resources of cessfully, increasing the overall prospective Tanzania: Wentworth
approximately 100 bcf have been identified and resource potential to 10.9 bcf (308.7 mcm).
de-risked across five prospects. LMS-2 will be tested after the COVID-19 Resources announces
Approximately 25% of this incremental restrictions in Morocco enable perforation and
prospectivity has been identified in a new Bur- testing crews to re-enter the country. The Com- operational update
ied Hill play concept, which is productive in a pany hopes that this will be late Q3-2020/early
neighbouring field 10 km to the east. Manage- Q4-2020. ahead of AGM
ment estimates that these follow-on prospects In addition to the 10.9 bcf (308.7 mcm) of
are expected to have similar costs and post-tax prospective resources that could be de-risked AIM-listed Wentworth Resources, the inde-
cash flow profiles to Sobhi. by LMS-2, management has identified a further pendent, East Africa-focused natural gas com-
Some eight to 10 wells are planned in the 25.5 bcf (722.1 mcm) of prospective resources in pany, has announced an operational update
West Gharib (SDX Working Interest: 50%) multiple prospects across the concession. ahead of its Annual General Meeting (AGM).
Highlights, 2020 Operations and Outlook:
The health and safety of our employees is the pri-
ority, and robust precautionary measures have
been put in place to ensure the continued safety
of our staff; there have been no reported cases
of COVID-19 at Mnazi Bay; Mnazi Bay remains
fully operational, with 2020 production guid-
ance remaining unchanged at 65-75mn cubic
feet per day (gross); average daily production
from 1 January 2020 to 31 May 2020 of 58.2 mcf
per day (gross); partnered with the Government
of the United Republic of Tanzania to provide
PPE, medical supplies and equipment to hospi-
tals in Mtwara and Dar es Salaam; the Govern-
ment of Tanzania has re-opened business and
travel within the country; gas volumes expected
to increase in H2 2020 now that the rainy season
has passed and COVID-19 restrictions in Tanza-
nia have been lifted.

Week 25 24•June•2020 www. NEWSBASE .com P17