SDX Energy broadens footprint in Maghreb
SDX Energy, an exploration-production company specialized in north-African acreage, announced yesterday that it had been awarded two licenses for onshore blocks in the Gharb basin: Moulay Bouchta Ouest and Lalla Mimouna Sud.
In 2017, SDX acquired Ireland-based Circle Oil’s subsidiary Circle Oil Maroc, along with its concessions; one of which is a concession for the Lalla Mimouna Sud. SDX Energy reapplied for the acreage following a 3D data acquisition campaign in the area that covers 857m2.
As part of the new agreement, SDX Energy will acquire 50km2 of new 3D seismic data and drill one exploration well in the next three years.
The Moulay Bouchta Ouest block covers 458km2. As per the agreement, SDX will reprocess 150km of 2D seismic and acquire 150 sq. km of 3D new data. It is also required to drill one exploration well in the first three years and a half. Both concessions are awarded for eight years.
Paul Welch, President and CEO of SDX Energy, commented: “We are very pleased to be expanding our acreage in Morocco, which we see as a key growth region for SDX going forward. Both of these permits offer significant underexplored hydrocarbon potential and are located adjacent to our existing operations and infrastructure, so can be tied into our facilities quickly. The award also gives SDX and its partner control over the entire onshore Gharb Basin. We have an active work programme planned for Morocco in 2019, with a 12 well drilling program set to commence in H2. With the addition of these new permits, we will be able to further grow our reserves and production base in Morocco, and generate significant value for our stakeholders, as we look to build upon our market leading position in country.”
SDX Energy’s portfolio contains interests in six concessions in Egypt and Morocco.