An audit of the SDX Energy PLC-operated South Disouq concession in Eqypt reported a 35% increase in gross proven and probable reserves (2P) from gross 66 bcfe as included in the London-based company's reserves audit covering all of its concessions as of Dec. 31, 2018.
As of Sept. 30, 2019, 2P reserves are 86 bcf of natural gas and 0.6 MMbbl of condensate, the report by Gaffney, Cline & Associates showed. This is equivalent to gross 89 bcfe.
The reserve increase is based on reprocessed 3D seismic data providing a better understanding of the structure and distribution of the reservoir around the production wells, the company said.
Gas has been flowing from all four production wells through the South Disouq central processing facility (CPF) since Nov. 7, 2019. The CPF is performing as expected, producing at a gross stabilized rate of about 50 MMcfe/d since Dec. 10, 2019.
All gas production is sold to the Egyptian national gas company, EGAS, at a fixed price of $2.85/Mcf, with the Government of Egypt's entitlement share of gross production roughly 51%.
SDX plans to begin a South Disouq drilling campaign in February 2020 with the spudding of the first of two wells targeting the Abu Madi and Kaft el Sheik prospective horizons encountered in four discoveries.
SDX operates the South Disouq concession with 55% interest. IPR Energy Resources Ltd, Irving, Tex., holds 45%.