British energy company SDX Energy has confirmed the presence of gas reserves in Morocco’s Sebou Basin, Central of the Gharb, Morocco, less than a month after commencing drilling the KSR-21 Well, the company reported on Thursday.
The drilling operation reached a depth of 1955 meters (full depth), confirming the presence of gas charged sands within the targeted reservoir section.
The company said that, after a short testing period, the well will be brought into production to supply existing gas offtakers.
The significant discovery comes on the heels of SDX Energy’s recent non-binding agreement for prepayment terms with its largest customer, Dika Morocco Africa. The initial terms of the agreement entail a withdrawal of two million US dollars by the end of September, aimed at financing the drilling costs of the KSR-21 well.
An additional set of arrangements for a larger prepayment is currently being negotiated and is expected to be agreed upon by early 2024. SDX intends to use it to support another multi-well back-to-back drilling campaign.