EGYPT: SDX Energy Commencement of Oil Production At Msd-21 Well, West Gharib Concession

SDX Energy has announced the commencement of oil production at the MSD-21 infill development well on the Meseda field in its West Gharib concession, Egypt. MSD-21, which encountered the primary top Asl Formation reservoir at 4,040ft MD (3,251ft TVDSS) and reached 4,740ft TD, after drilling through 62.3ft of good-quality, net oil pay sandstone with an average porosity of 21.3%. The well has now been successfully perforated, tied in to the existing facilities, and flow tested. It is expected that post-cleanup, the well will achieve a stabilized gross production rate of c.300bbl/d which is in line with pre-drill estimates. 

MSD-21 is the first well in a fully-funded, 12-well development campaign at the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. The development drilling campaign is aiming to grow gross production from current rates of c.2,100bbl/d to c.3,500 – 4,000bbl/d by early 2023. 

The rig is now in the process of moving to the next well in the campaign, MSD-25, which is expected to spud by mid-January. 

Mark Reid, CEO of SDX, commented: 

“We are pleased to get MSD-21 successfully perforated and connected to our infrastructure. The well is now producing and, when it has fully cleaned-up, we expect it to contribute c.300bbl/d of gross oil production. This campaign provides a low-cost, highly beneficial exposure to the oil price and with a netback of US$35/bbl at US$68/bbl Brent in the first nine months of 2021, West Gharib is a very high margin asset in our portfolio. MSD-21 and subsequent wells are expected to significantly boost the production and cashflow from these fields in the coming months and I look forward to updating the market further as the campaign progresses.”