LONDON, England, Feb. 8, 2016 /CNW/ - SDX Energy Inc. ("SDX" or the "Company") (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt & Cameroon, is pleased to announce the Al Amir SE 23 development well in North West Gemsa, has encountered significant oil bearing reservoir sections in both the Kareem Rahmi and Shagar formations and will be completed as a producer in the Shagar.
Al Amir SE-23 Well:
Al Amir SE-23 (AASE-23) was drilled to a depth of 9,900 feet where both the Shagar and Rahmi oil reservoirs were encountered. Log analysis indicates 23 feet of net Shagar oil pay and 28 feet of net Rahmi oil pay. The well has been completed as an oil producer in the Shagar and has flowed on test light 42.2⁰ API oil at a rate of 3,860 BOPD with 2.55 MMSCFD of associated gas. The well will be placed in production in the coming days as soon as the completion rig has moved off location.
Commenting, Paul Welch, CEO of SDX Energy, said:
"The AASE23 well results were excellent and the well is expected to be another strong producer from the Shagar. Drilling costs for the AASE-23 were down by 30%, on a comparative basis with previous wells, making this well both a technical and also commercial success. The AASE-23 is the first of two development wells to be drilled in the field this year. The drilling rig has now moved to the next location (AASE-24) and we anticipate drilling to commence in the next few days. The results of these two development wells combined with a 5 well work-over program will allow us to maintain production at these increased rates for the remainder of 2016. Field production is currently 7,535 Bopd and 8.9 MMscfd."
The North West Gemsa concession is located onshore on the west side of the Gulf of Suez, approximately 300 km southeast of Cairo. Two main oil fields are producing light oil, the Al Amir SE field along with the Al Ola extension to the south and the Geyad field to the north. SDX has a 10% working interest in the North West Gemsa Concession.
The Company's current net production in Egypt is 1,666 boepd with 903 boepd net from NW Gemsa, 763 bopd net from Meseda.
SDX is an international exploration, production and development company, headquartered in London, England, UK, with a principal focus on Egypt. In Egypt, SDX has an interest in two production concessions: NW Gemsa and West Gharib both located in the Eastern desert. SDX's portfolio also consists of South Ramadan, a development asset in the Gulf of Suez; South Disouq, an exploration asset in the Nile Delta; and West Bakassi, an exploration block in Cameroon within the prolific Niger Delta Basin. For further information please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States, in any province or territory of Canada or in any other jurisdiction.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
SOURCE SDX Energy Inc.
For further information: SDX Energy Inc.: Paul Welch, President and Chief Executive Officer, Tel: +44 203 219 5640; Mark Reid, Chief Financial Officer and Director, Tel: +44 203 219 5640; Buchanan (PR): Ben Romney/Madeleine Seacombe, Tel: +44 207 466 5000