The MA-1X (SDX WI: 67%) discovery, announced on 8 June, is currently in the process of being tested. As expected, the well test showed good flow rates of c. 8.0 MMscf/d commensurate with the high quality Kafr El Sheikh Formation reservoir around the well bore, which has an average porosity of 31.9%. However, the well-head pressure decline observed over a three-day production test was higher than expected, which could indicate that a lower volume of gas is connected to the MA-1X well bore compared to pre-drill estimates. Whilst this does not change the Company's estimate of overall gas in place in the discovery, it may indicate that there is a change in facies closer than expected to the MA-1X well bore that could be compartmentalising the gas to some extent. The Company is currently undertaking a pressure build up test and will obtain the relevant data from down hole gauges early next week, the results of which will be available in the coming weeks. Additionally, the existing 3D seismic data around the discovery will be reprocessed and re-interpreted. The final results of this work are expected to be available in three months' time and will inform the requirements to commercialise the discovery, which may necessitate more wells than the two wells initially estimated to produce the gas.
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SDX is an international oil and gas exploration, production, and development company, headquartered in
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Forward-looking information
Certain statements contained in this press release may constitute 'forward-looking information' as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking information. In particular, statements regarding developments at, and the results of, the drilling campaign at South Disouq, and the time in which the Company intends to update the market on its future results should be regarded as forward-looking information.
The forward-looking information contained in this document is based on certain assumptions, and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out planned activities, and the availability and cost of labour and services.
All timing given in this announcement, unless stated otherwise, is indicative, and while the Company endeavours to provide accurate timing to the market, it cautions that, due to the nature of its operations and reliance on third parties, this is subject to change, often at little or no notice. If there is a delay or change to any of the timings indicated in this announcement, the Company shall update the market without delay.
Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, political, social, and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; permitting risks; the ability to access sufficient capital from internal and external sources and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to refer to the Principal Risks & Uncertainties section of SDX's Annual Report for the year ended
The forward-looking information contained in this press release is as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the included forward looking information, except as required by applicable law. The forward looking information contained herein is expressly qualified by this cautionary statement.
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