LONDON, England, March 28, 2016 /CNW/ - SDX Energy Inc. ("SDX" or the "Company") (TSX VENTURE: SDX), an oil & gas exploration and production company with assets in Egypt & Cameroon, hereby announces that drilling operations have been completed on the Manatee-1 exploration well in Cameroon. The well is operated by Dana Petroleum and SDX holds 35% working interest (38.89% paying interest) in the concession.
The Manatee-1 well, which is located in shallow water in the prolific Niger Delta Basin, offshore Cameroon, was spud on 2nd of March using the Paragon M825 jack-up rig, reached TD of 1,447 meters on 27th of March.
The well intersected 26 metres of gas bearing section of varying quality throughout the wellbore. Wellbore conditions did not permit the acquisition of a full suite of logging tools in the deeper sections of the hole which makes the analyses of these lower intervals inconclusive at this time. Additional technical work will be completed with the samples and material collected from the well to improve the understanding of their quality in a post well analyses. The operation was conducted safely and within the anticipated pre-well budget estimate.
Commenting on the results, CEO Paul Welch said:
"Whilst we are disappointed not to have made an oil discovery, we recognized the risks associated with exploration wells of this kind. The secondary objective was to see whether we could make a commercially viable gas discovery. At this stage it is too early to quantify the Manateee-1 gas potential and our technical team will be working closely with our partners to evaluate the well results to determine if the gas volumes on the block have commercial potential. Positively, the Block contains a further 12 prospects and leads which have been significantly de-risked by the Manatee-1 well results. We will use the information obtained from this well to improve our understanding of the Bakassi West Block so that we can sit down with our partners and the relevant authorities to discuss the next steps. We are in a fortunate position to have a stable core business in Egypt which continues to generate positive cash flow and also provide us with additional exciting exploration opportunities such as in the South Disouq area where we are currently acquiring 3D seismic and plan to drill an exploration well towards the end of this year. We continue to focus on increasing production in our high margin fields of North West Gemsa and Meseda whilst preparing for our next potentially transformational exploration well in South Disouq at the end of year. I look forward to reporting on our progress on these initiatives' in the near future."
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 Bakassi West, 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