SDX Energy has begun drilling in Morocco, launching the second phase of its 2021 campaign.
The programme began with the KSR-19 well. It will follow this with the SAK-1 well. If the latter is successful, the company said, this will open a new exploration area on the Lalla Mimouna Sud concession.
“This second phase will consist of two wells with the objective of adding reserves to allow us to continue to deliver gas to our customers in line with their contractual requirements,” SDX CEO Mark Reid said.
“Furthermore, with SAK-1, we hope to open a new exploitation area at Lalla Mimouna Sud to the west of our core producing area. I look forward to updating the market in the coming month on the results of these wells.”
The KSR-19 well is targeting the Main Hoot reservoir, at a depth of around 1,780 metres. The SAK-1 well will target a Guebbas reservoir, at around 1,300 metres.
SDX said both wells were targeting shallow, biogenic gas. The first well is close to existing infrastructure, which would allow a tie-in to be provided quickly and at low cost.
The SAK-1 is slightly further away but would still be “relatively quick”, the company said.
SDX is using a drilling rig that had been stacked in a Moroccan yard. As such, mobilisation costs are low.
SDX expects to complete the work in December 2021.
The first phase of SDX’s Morocco drilling campaign this year involved three successful appraisal/development wells. These were the OYF-3, KSR-17 and KSR-18 wells. The cost associated with the wells was $8.7 million.
The company posted its results yesterday. It said that revenue was $5mn higher in the first nine months of the year in Morocco as a result of higher demand and another factory taking gas. Furthermore, the Moroccan dirham strengthened.