Page 10 - AfrOil Week 43 2019

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
SDX Energy:
Commencement Of Drilling
Operations In Morocco
SDX Energy Plc (AIM: SDX), the MENA-fo- cused oil and gas company, is pleased to announce the commencement of a 12 well drill- ing campaign, targeting a mean 15bcf of gross unrisked prospective resources, in its operated Gharb Basin (SDX: 75% working interest) acre- age in Morocco.
The first seven wells located in the Compa- ny’s core producing concessions at Sebou and Gharb Centre are lower-risk appraisal wells targeting prospects which are close to existing infrastructure. These wells can be tied in quickly, at low cost, and are similar in geological risk to the discoveries already made and producing in this area.
These seven appraisal wells will be followed by two step-out exploration wells further to the north in Gharb Centre and outside the reach of the Company’s existing infrastructure. These two exploration wells are targeting prospects which are similar to the discoveries made in Sebou and Gharb Centre albeit they are deemed higher risk as this part of the concession has not been previously tested. Success here could open up this northern area of the concession for exten- sive follow-on drilling.
The last three wells of the campaign are expected to be higher-risk exploration wells in the Lalla Mimouna Nord concession, target- ing larger prospects in deeper, as yet unproven, horizons.
In order to optimise operations and reduce costs, SDX has secured an advanced North American rig to reduce drilling time. Further- more, the Company will perforate and test successful wells in separate campaigns, with multiple wells tested back to back in each cam- paign to reduce equipment mobilisation costs. The drilling campaign is expected to complete in Q1 2020.
SDX will update the market on the progress of the drilling campaign at the earlier of the com- pletion of the first testing campaign, which will cover up to four of the first seven appraisal wells, or the issuance of the Company’s planned year end operational update in early January 2020.
Mark Reid, CFO and Interim CEO of SDX, commented:
“SDX is pleased to announce the start of its drilling campaign in Morocco. The 12 wells have three key objectives. The first objective is to drill seven lower risk wells in our existing core producing area. These wells are close to exist- ing infrastructure and will increase reserves
for the continued supply of gas to our existing customers.
Our second objective is to drill two step-out exploration wells to the north of our core pro- duction area which, if successful, would open up new, target-rich acreage for future drilling. The final objective of the campaign is to test larger but higher-risk prospects in the Lalla Mimouna Nord concession. To do this, we plan to drill up to three wells, however, if the first well does not meet our expectations, we may move the rig back to our core producing area and complete the campaign by drilling two further lower-risk, but smaller, prospects to add additional reserves. We expect the campaign to complete in Q1 2020 and we look forward to updating the market on progress in due course.”
SDX is an international oil and gas explora- tion, production and development company, headquartered in London, United Kingdom, with a principal focus on MENA. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In addition, the Company has a 55% operated interest in the South Disouq gas project in the Nile Delta which is expected to commence production in mid-Q4 2019. In Morocco, SDX has a 75% working interest in the Sebou concession, situated in the Gharb Basin. The producing assets in Morocco are character- ised by exceptionally low operating costs, mak- ing them particularly resilient in a low oil price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt and Morocco.
SDX Energy, October 25 2019
Sudd Petroleum Operating Co. Prepares to Ramp Up Production in South Sudan’s Block 5A Concession
South Sudan is preparing to restart production in various oil fields, including Block 5A operated by Sudd Petroleum Operating Company; A new discovery in the Dar Petroleum Operating Com- pany-operated Adar field will drive investment into the country; Juba will host the third edition of South Sudan Oil & Power (SSOP) 2019, pro- duced by Africa Oil & Power and in partnership with the Ministry of Petroleum of South Sudan on October 29-30, 2019; South Sudan will launch its first ever bidding and licensing round 2020 at SSOP 2019.
Sudd Petroleum Oil Company (SPOC) has proactively started corporate social responsibil- ity activities for local communities surrounding Block 5A in the Tharjath field, which it operates.
The activities precede production resumption, which is expected to restart by the end of the year.
Work includes the provision of treated water supply, as well as the provision of medical sup- plies, which currently benefits an estimated 5,000 people in the area.
The South Sudanese government has been in talks with SPOC to re-open the block since 2016 by consulting with companies and deploy- ing extra security at the Tharjath field. The Block – which had a 10% production cap enforced by Sudan – has the potential to produce up to 15,000 barrels per day (bpd), according to an agreement signed between Sudan and South Sudan in 2018.
Block 5A is located in the Muglad-Sudd Rift Basin on the same geological trend as the Greater Nile Oil Project in Sudan. It has a production capacity of 80,000 bpd of high-quality Nile blend. Production in Block 5A began in 2006 at 40,000 bpd and peaked at 54,000 bpd in 2009. By 2014, however, production was reduced signifi- cantly to 4,500 bpd, eventually ceasing entirely.
“SPOC community outreach activities will be further increased moving forward,” President of SPOC Eruwan Gerry says.
The potential resumption of Block 5A comes during a time of peace in the country, as H.E. the Minister of Petroleum Awow Daniel Chuang strives to create a conducive environment for investors.
To further attract investment into the coun- try’s energy sector, Juba will host the third edi- tion of South Sudan Oil & Power 2019, produced by Africa Oil & Power and in partnership and with the endorsement of the Ministry of Petro- leum of South Sudan on October 29-30, 2019 at the Crown Hotel.
South Sudan’s petroleum ministry will launch the country’s first oil and gas bidding round 2020 at the event, as well as a comprehensive environ- mental audit, which will be done through an international tender – in line with the country’s goal of promoting transparency.
“As we work towards replenishing our [oil] reserves, we want to invite investors to partici- pate in the bidding and licensing round 2020. We [also] intend to announce the tendering round for a comprehensive environmental audit – the first of its kind in South Sudan,” H.E. Minister Awow Daniel Chuang stated, adding that South Sudan is focused on addressing environmental challenges – a major concern of its citizens.
“We are going to have a comprehensive environmental audit, which needs to be done through an international tender – in line with our policy of promoting transparency,” he said.
The country, meanwhile, made a new oil dis- covery at the Adar oilfield in Block 3 in August, containing more than 37mn barrels of recover- able oil.
The discovery was made by the Dar
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Week 43 30•October•2019