Proactive Investors
The LNB-1 well on the Lalla Mimouna permit unearthed two new discoveries, one stands out as it’s unlike the company’s other recent discoveries onshore Morocco.
Full analysis has not yet been possible but the gas find is seen to be larger than expected.
SDX Energy Inc (LON:SDX, CVE:SDX) has announced a new discovery with gas bearing horizons encountered in the LNB-1 exploration well, in the Lalla Mimouna permit onshore Morocco.
The company told investors that the gas horizons were present in a significantly over-pressured section – mudlog data indicated elevated gas readings of more than 20%, and above 50% in multiple sections – though further logging could not be undertaken by conventional methods.
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Additionally, the company said gas shows in this section contained heavier hydrocarbon components throughout which is indicative of a thermogenic hydrocarbon source rock, and these types of shows have not been seen to date in other parts of the basin.
This, according to SDX, indicates that a new petroleum system has been encountered in this area.
Significantly larger discovery than recent successes
An in-house estimate sees the new discovery area containing some 10.2bn cubic feet of conventional natural gas and 55,000 barrels of condensate – which, it says, is significantly larger than the traps typically encountered in the Sebou area (which was the company’s recent focus in Morocco).
“We are very excited about the results of this exploration well,” said Paul Welch, SDX chief executive.
“It was a higher risk exploration prospect than previous drilling in Sebou, as it was a sequence that had not been previously penetrated in a similar structural location.
“We had anticipated a higher-pressure section, based upon offset drilling in the area, but the actual pressures encountered, the thickness of the section, and the type and amount of shows significantly exceeded our expectations.”
The discovery would exceed the size required to justify development and connection to the existing infrastructure in the Sebou area, the company added.
Secondary target also delivers
The LNB-1 well also had success in the secondary target (the Upper Dlalha) where 2.6 metres of net conventional natural gas pay sands were encountered, with average porosity in the pay section of 33%.
SDX highlighted that this smaller discovery is similar to the Guebbas targets which are found at Sebou.
The well will now be completed as a producer from the Upper Dlalha, while the larger discovery will be suspended until appropriate equipment is ready to test and produce from the over-pressured section.
More operations planned
Welch added: “We are currently in the early planning phases of determining how best to complete and test this section.
“The estimated volume potential is very encouraging and I look forward to updating the market further on our activities in due course.
“Meanwhile, we have one more exploration well to drill on the permit in this campaign and I am looking forward to some more positive results based upon our success in LNB-1.”
Drilling will continue elsewhere, with the LMS-1 exploration well in the Lalla Mimouna Nord permit. It will be the final well in the present campaign.
