The discovery also confirms that the Company's core productive area extends to the north.
Both the Upper and Lower Guebbas targets in OYF-2 were encountered and reservoir thickness and quality were better than pre-drill expectations. The Upper Guebbas was encountered at a measured depth of 1,001 meters, while the Lower Guebbas was penetrated at a measured depth of 1,120 meters.
Management estimates that approximately 1.3 to 1.9 bcf1 of gas is recoverable from the horizons encountered by the OYF-2 well, which will be tested in February. The discovery will be tied into the Company's infrastructure when required, at an estimated cost of approximately
The rig has now moved to the BMK-1 location, which is approximately 11 kilometres to the north of OYF-2. BMK-1 will again test the extent of the northern expansion of the Company's core productive area and, if successful, could de-risk a number of similar close-by prospects. After BMK-1, one more close to infrastructure well and two other potentially play-opening wells in Lalla Mimouna will be drilled to complete the campaign in March.
South Disouq (SDX Working Interest 55%)
Preparations continue at South Disouq for two exploration wells targeting gross unrisked P50 volumes of up to 104 bcf from the same horizons encountered in the Company's four discoveries to date. The first well, Salah, which is expected to spud in mid/late February and complete in
West Gharib (SDX Working Interest 50%)
In early February the Company is planning to spud an appraisal/development well in the Rabul area of its West Gharib concession. If successful, this well could add approximately gross 200-300 bbl/d of production.
With the imminent commencement of drilling campaigns in South Disouq and West Gharib in
About SDX
SDX is an international oil and gas exploration, production and development company, headquartered in
Contact:
Tel: +44 203 219 5640
Forward-Looking Information
Certain statements contained in this press release may constitute 'forward-looking information' as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking information. In particular, statements regarding the Company's future drilling campaigns and results in
The forward-looking information contained in this document is based on certain assumptions, and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out planned activities, and the availability and cost of labour and services.
All timing given in this announcement, unless stated otherwise, is indicative, and while the Company endeavours to provide accurate timing to the market, it cautions that, due to the nature of its operations and reliance on third parties, this is subject to change, often at little or no notice. If there is a delay or change to any of the timings indicated in this announcement, the Company shall update the market without delay.
Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, political, social, and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; permitting risks; the ability to access sufficient capital from internal and external sources and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to refer to SDX's Management's Discussion & Analysis for the three and nine months ended
Oil and Gas Advisory
Certain disclosures in this news release constitute 'anticipated results' for the purposes of National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the Company's resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume, flow rate, production rates, porosity, and pay thickness attributable to the resources of the Company. Such estimates have been prepared by Company management and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, including those described above and various geological, technical, operational, engineering, commercial, and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.
Use of the term 'boe' or the term 'MMscf' may be misleading, particularly if used in isolation. A 'boe' conversion ratio of 6 Mcf: 1 bbl and a 'Mcf' conversion ratio of 1bbl: 6 Mcf are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Management Estimates
The management disclosed or referenced herein have been prepared in accordance with the Canadian Oil and Gas Evaluation Handbook.
Prospective Resources
The prospective resource estimates disclosed or referenced herein have been prepared by an independent qualified reserves evaluator,
There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources, but ranges are defined based on data from the Company's nearby existing analogous wells.
(C) 2020 Electronic News Publishing, source