Kallanish Energy News
London-listed, MENA-focused oil and gas company SDX Energy announced Wednesday a fresh gas discovery onshore Morocco, opening up a new play in the country, Kallanish Energy reports.
SDX operates, with a 75% stake, five concessions in Morocco, all of which are located in the northern Gharb Basin: Sebou, Lalla Mimouna Nord, Gharb Centre, Lalla Mimouna Sud, and Moulay Bouchta Ouest.
These producing gas assets are characterized by “exceptionally low operating costs and fixed price gas contracts” making them particularly resilient in a low oil price environment.
The BMK-1 well was drilled to a depth of 1,551 meters and encountered commercial quantities of gas in both targeted zones. The company estimates a discovery of roughly 0.9 billion cubic feet (Bcf), with potential to unlock 10 Bcf of prospective resources in and around the Beni Malek (BMK) cluster.
Following the OYF-2 discovery in late January, the BMK-1 discovery confirms that the prospectivity in the company’s existing core production and development area extends to the north. Based on well results and existing 3D seismic over the area, SDX believes it has opened “a new play fairway.”
“We can now plan to develop a material and valuable new prospective area to the north of our existing infrastructure in a market where we are the only gas producer and where we receive gas prices of between $10-12 per thousand cubic feet,” said CEO Mark Reid.
Under the existing exploration campaign, SDX will now move the rig to the Lalla Mimouna concession to drill the potentially play-opening LMS-2 well. The 10-well program will conclude after this drilling.
