Page 16 - AfrOil Week 26 2021

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM
SDX Energy starts drilling

operations in South Disouq

AIM-listed SDX Energy, the MENA-focused
energy company, has announced the com-
mencement of the South Disouq drilling cam-
paign, which will comprise two wells over the
next few months.
The upcoming drilling campaign will consist
of one step-out development well and one explo-
ration well in the Company’s operated South
Disouq (SDX: 55%WI) acreage in Egypt.
The first well, IY-2, which was spudded on
June 28, 2021, is a development well targeting Prime is in a strong position to distribute div- connected, and are now producing into our
the high porosity and permeability Basal Kafr idends, whilst maintaining sufficient liquidity infrastructure. Post-drill P50 reserves are esti-
El Sheikh reservoir at approximately 6,600 feet to deliver its business plan. Africa Oil’s outlook mated at a combined gross 0.81bcf recoverable
(2,210 metres) in the Ibn Yunus Field. The well, for the second half of this year is very promising which is in line with predrill estimates.
which will take approximately one month to as we look forward to higher production rates Finally, the third well of the campaign, KSR-
drill, can be rapidly tied into the existing infra- from Egina, the corporate loan refinance that 18, was spud on May 30, 2021, and reached its
structure at the nearby IY-1X well with pro- significantly reduces our cost of capital and high TD of 1,905 metres MD on June 14, 2021. Both
duction anticipated to start in late Q3-2021. impact exploration catalysts offshore Namibia, prognosed targets were successfully encoun-
It is expected that the IY-2 well will maximise South Africa and Guyana.” tered, with the shallower Mid Guebbas target
recovery from the Ibn Yunus Field and help to On January 14, 2020, the Company closed comprising of a 3.8-metre net gas sand and the
maintain current gross production levels of circa the acquisition of a 50% ownership interest in main Hoot target encountering a 13.9-metre net
45 mcf (1.274 mcm) per day at the South Dis- Prime (previously known as Petrobras Oil and gas sand. As expected, the main Hoot had been
ouq Central Processing Facility. The Company Gas). Prime holds a 16% net Working Interest in slightly depleted by production from a nearby
expects to update the market on the result of this OML 130, offshore Nigeria, which contains the well, however the well is still expected to con-
well in late July/early August. Egina oilfield. tribute incremental volumes and deliverability
The second well in the campaign, the HA-1X Africa Oil Corp., June 29 2021 from this extensive compartment. Further to
exploration well on the Hanut prospect, is these zones, a third 5.5-metre net gas sand was
expected to spud after the completion of IY-2 in SDX Energy completes encountered at the Base Guebbas and will con-
early August. HA-1X, which is targeting gross tribute to production in the future when the
unrisked mean recoverable volumes of 139 bcf first phase of drilling Hoot has been depleted. KSR-18 will be tested
(3.936 bcm) with a 33% chance of success is also in the coming weeks to refine volumetrics
expected to take approximately one month to operations in Morocco but based upon logging results, the Company
drill and the Company expects to update the expects that this too will be close to its pre-drill
market on its result in mid-September. AIM-listed SDX Energy, the MENA-focused P50 EUR estimate of gross 750 mcf (21.24 mcm).
SDX Energy, June 29 2021 energy company, has announced the successful The second phase of the Moroccan drilling
completion of the initial three well phase of its campaign is expected to commence in Septem-
Africa Oil provides Egina 2021 drilling campaign in Morocco, which will ber/October 2021.
comprise up to a total of five wells over the year.
SDX Energy, June 28 2021
field operational update paign consisted of three appraisal/development
This first phase of the Morocco drilling cam-
Africa Oil Corp has updated the markets on wells in SDX’s operated Gharb Basin acreage in MIDSTREAM
a significant increase in the Egina oilfield Morocco (SDX: 75% working interest). The first
production. well, OYF-3, which was spudded on April 30, San Leon conditionally
Egina’s production continues to increase due 2021, reached its TD at 1,183 metres MD on May
to the relaxation of its OPEC+ quota restriction. 11, 2021. The main Guebbas reservoir target was acquires further interest
For the month of June, the field’s quota increased thicker than expected and encountered a 5.2-
to 173,000 barrels per day (bpd) of oil. This com- metre net gas sand. The well also encountered a and option in ACOES
pares to Egina’s Q1-2021 average daily produc- 1.7-metre net gas sand in a secondary zone that
tion of 152,000 bpd. The field’s July and August OYF-3 will also produce from. San Leon, the independent oil and gas produc-
quotas have been approved at 181,000 bpd and The second well, KSR-17, was spud on May tion, development and exploration company
177,000 bpd respectively. 13, 2021 and reached its TD at 1,848 metres MD focused on Nigeria, announces a conditional
Keith Hill, Africa Oil’s President and CEO, on May 27, 2021. In the main Hoot reservoir, the investment of $2mn as well as an option to con-
commented: “Prime’s assets have performed well encountered a 5.3-metre net gas sand which ditionally invest a further $6.5mn in the equity
better than expected during the first half of this was slightly thinner than expected, but with very of Energy Link Infrastructure (Malta) Ltd (ELI),
year and strong cash flows from operations, have good reservoir properties. the company which owns the Alternative Crude
significantly bolstered Prime’s cash reserves. Both OYF-3 and KSR-17 have been tested, Oil Evacuation System (ACOES) project.

P16 www. NEWSBASE .com Week 26 30•June•2021