Sign up Australia
Proactive Investors - Run By Investors For Investors

SDX Energy hits new oil discovery in Rabul 5 well in Egypt

"We are pleased to continue our recent run of drilling success with this oil discovery at Rabul 5,” said Paul Welch, SDX chief executive
oil and gas operations
The well unearthed two oil bearing formations

SDX Energy Inc (LON:SDX, CVE:SDX) has struck a new oil discovery in the Rabul 5 well in the West Gharib Concession in Egypt, where the well will shortly be completed for production.

The Rabul 5 well was drilled down to 5,280 feet and it encountered some 151 feet of net heavy oil pay, across the Yusr and Bakr formations.  The average porosity was said to be 18%.

READ: SDX Energy confirms latest successful well in Morocco drill programme

Following the completion of the well, SDX will move on to drill the Rabul 4 well which will further appraise the oil field.

"We are pleased to continue our recent run of drilling success with this oil discovery at Rabul 5,” said Paul Welch, SDX chief executive.

“This well encountered the thickest section of pay sands seen in the Rabul area to date, demonstrating the significant oil potential contained within the licence. 

“We have further drilling activity planned for the concession over the coming months and we firmly believe that these activities will enable us to increase output from the licence and achieve our ambitious production plans for 2018."

Analyst repeats 'buy' recommendation

“The well has good quality reservoir sands (with porosity of 18%) in the Yusr and Bakr formations, with net pay of 151ft - above pre-drill expectations, and significantly greater than the 101ft of net pay encountered at the Rabul-2 well drilled last year,” said Ashley Kelty, analyst at Cantor Fitzgerald.

“The well will now be completed, and tied in to existing infrastructure at the Meseda Central Processing Facility nearby (5 km). The rig will move on to drill the Rabul-4 well – the second of the two appraisal/development wells planned at Rabul in 2018.”

Kelty added: “This latest successful well in Egypt provides further proof of the low cost upside at Meseda, and we would anticipate that near term production may receive a significant lift once the well is put on production.”

Cantor has a ‘buy’ recommendation for SDX, with a 64p price target that suggests some 30% to the current price.

On Wednesday, SDX shares gained 1.97p or 4.18% to 49.22p.

View full SDX profile View Profile

SDX Energy Inc Timeline

Related Articles

Oil drums
March 08 2018
Hartleys has a 12-month share price target of $0.25 on the stock implying upside of nearly 100%.
Greka drilling rig truck
January 29 2018
"With firm drilling contracts signed with state owned enterprises, we start 2018 with a materially stronger foundation than last year”
oil and gas operations
February 08 2018
Touchstone shares advanced as a 10-well programme was launched in Trinidad

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use