British oil and gas company SDX Energy announced Monday in a press release that it has commenced drilling the Ksiri-21 well in Sebou, Central of the Gharb Basin (Morocco).
The well is expected to reach a depth of approximately 1,950 meters. Utilizing existing 3D seismic data, the well is targeting a promising prospect within the main Hoot formation, which is known for its significant gas production in the area.
SDX has already drilled more than 20 production wells in the same basin, making this new well a low-risk endeavor. Additionally, the well has the potential to be immediately put into production, providing gas to the company’s existing customers, thanks to the improved gas price announced on June 5, 2023.
“Commencement of drilling signifies an early milestone in SDX’s new roadmap in Morocco, which the Company will present imminently. As part of re-energizing the Company’s upstream production, we will assess the feasibility of drilling additional wells, back-to-back. This type of program would reduce capex per well, ensure operational efficiency, and prove sufficient reserves of ‘gas-behind-pipe’ to meet both existing and future demand,” said the company’s Managing Director Daniel Gould.
SDX currently has a portfolio of exploration, development and production assets in Egypt and Morocco. According to Alliance News, its shares were up 4.1% to 4.11 pence each in London on Monday morning.