SDX Energy Inc (LON:SDX) has announced the completion of the KSR-16 well on the Sebou permit in Morocco (SDX 75%) with the well delivering a restricted flow rate of 8.43mmscfd, exceeding management expectations, and the highest flow rate to date from the three successful wells drilled to date. KSR-16 is now on production.
The KSR-16 well encountered 14.2m of net gas pay in the Hoot formation, exceeding management estimates of net pay by over 50%. Confirmation of strong flow rates could provide the basis for a gas reserve upgrade and, importantly, provides confidence in the company’s ability to deliver on a forecast gas sales rate of 10-11mmscfd in 2018. Three producers are individually capable of meeting current daily sales commitments of 6mmscfd (KSR-14 flow tested at 6.4mmscfd, KSR-15 at 7.52mmscfd and KSR-16 at 8.43mmscfd). Moroccan gas sales attract an average sales price of c $9/mcf with high netbacks.
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