SDX Energy, a London-headquartered oil and gas exploration and production firm with operations in the Middle East and North Africa, has announced the commencement of oil production at the MSD-25 infill development well on the Meseda field in its West Gharib concession in Egypt.
The development follows a successful completion of drilling at the well in late February as part of a campaign that comprises the development of 13 wells at the Meseda and Rabul oil fields in Egypt’s eastern desert to expand the country’s overall production capacity. Egypt has recorded a decrease in crude oil and condensate production since 2015 due to the over reliance on mature fields and a lack of new discoveries. Projects such as the MSD-25 well will enable the north African country to retain its position as a leading hydrocarbon producer on the continent.
SDX Energy anticipates achieving a gross production rate of c.300 barrels per day (bpd) at the well. During drilling, the company encountered the primary top Asl Formation reservoir at 4,109ft MD and reached 4,385ft TD, after drilling through 84.8ft of good-quality, net oil pay sandstone with an average porosity of 26.1%.
In a press statement, Mark Reid, the CEO of SDX, confirmed that MSD-25 has been connected to the company’s infrastructure and is now producing.
Reid, added that, “Our 13-well development campaign at West Gharib, which we are now accelerating with the contracting of a second rig, provides a low-cost, highly beneficial exposure to the oil price which has generated a netback of $35 per barrel at $68 per barrel Brent in the first nine months of 2021. MSD-25 and the rest of the planned wells are expected to significantly boost the production and cashflow from these fields in the coming months and I look forward to updating the market further as the campaign progresses.”
SDX plans to start drilling the KMSD-24 well by mid-April as well as assess the lifespan of the rigs. The company holds a 50% working interest in the West Gharib concession and a 55% operated interest in the South Disouq gas field in the Nile Delta in Egypt.