London South East
SDX Energy Inc said Tuesday that it has completed and tested the ONZ-7 well on the Sebou permit in Morocco.
The oil and gas exploration and production company said that the well reached an average flow rate of conventional natural gas of 10.0 million standard cubic feet per day. SDX will now shut in the well for several days to allow pressure to build, after which it will be connected to local infrastructure.
“Today’s positive update on ONZ-7 reaffirms our view that the Sebou permit has the potential to be highly cash generative for SDX. Furthermore, the maximum flow rate during this test of 15.34MMscf/d is the highest achieved to date in the basin. This provides us with further confidence in being able to deliver our gross production target of 8-10MMscf/d of conventional natural gas in Morocco by the end of 2018,” SDX Chief Executive Paul Welch said.
SDX shares were down 2.7% at 47.21 pence per share on Tuesday morning.
By Toby Woodall; tobywoodall@alliancenews.com
