SDX Energy Inc (LON:SDX, CVE:SDX) has confirmed that the recently drilled KSR-16 well, onshore Morocco, has now been connected to the sales line and flow testing will start early next week.
Additionally, the company noted that it has now secured a four-month extension to the current phase of the Lalla Mimouna permit, also onshore Morocco, through to July 22 so that it will have sufficient time to evaluate the outcome of an upcoming exploration drilling campaign.
READ: SDX Energy kicks off well operations on ELQ-1 in Morocco
Exploration work is due to start at Lalla Mimouna in March 2018.
The company has decided to end operations on the ELQ-1 well, on the Gharb Centre permit, after encountered intervals were deemed not to be sufficiently commercial to complete the well. It was drilled to a depth of 1,484 metres and has encountered 22.6 metres of net reservoir pay and two metres of net conventional gas pay.
ELQ-1 will be plugged and abandoned and the drill rig will move on to the next location, for the ONZ-7 development well.
"Despite the result at ELQ-1, we remain very upbeat about the remainder of our Moroccan drilling campaign, which has already yielded discoveries from the first three of this nine well campaign,” said Paul Welch, SDX chief executive.
READ: SDX Energy confirms KSR-15 well is now in production
“It is important to note that this well is also the only one in the current program drilled using legacy low-resolution 3D data, acquired from the previous operator. It was an important test that has strengthened our belief in the need to acquire high resolution 3D seismic data, that we have successfully used in our first three wells, across all of our concessions of interest.”
Welch added: “We remain on track to achieve our target of increasing gas sales volumes in Morocco by up to 50% and we look forward to updating the market on this in due course."