SDX Energy Inc (LON:SDX, CVE:SDX) said in a statement after Tuesday’s market close that it expects to achieve higher production volumes in 2018.
The project update comes as the company hosts an analyst visit in Morocco.
READ: SDX Energy unearths another gas discovery onshore Morocco
In Morocco, driven by new drilling successes, the company said it will increase gas output volumes in line with new customer tie-ins. It is targeting production between 8mln and 10mln cubic feet per day.
The successful new well programme is set to continue, with SDX following the ONZ-7 well with two development wells and two exploration wells. Additionally, the company is to shoot 240 square kilometres of 3D seismic as part of the Rharb Centre project.
Moroccan drilling costs are anticipated at US$13mln, while the seismic is expected to cost US$6.5mln.
In Egypt, meanwhile, the company has increased production guidance to 3,800 barrels of oil per day for the Meseda concession, while at the North West Gemsa asset production of 4,422 barrels of oil equivalent per day.
SDX intends to drill four new wells in Egypt – two to develop the Rabul discoveries and two to maintain production levels in the Meseda area. There will also be some well workover work (replacing pumps).
At NW Gemsa, two new wells are planned alongside seven well workovers.
Overall, the gross capex for Meseda is budgeted at US$6mln and the NW Gemsa programme is expected to cost US$6.6mln gross.
SDX Energy kicks off fifth well in Morocco campaign
The company is also planning to advance the new discovery at the South Disouq Concession, where first gas production is targeted for ‘mid-2018’ and four further wells are planned. Gross capex is estimated at US$15mln for South Disouq.
Elsewhere, the company expects to drill a ‘commitment’ well for the South Ramadan offshore licence and, with its 12.75% stake, it expects its share of the cost will be around USE3bn
SDX owns 50% of Meseda and NW Gemsa, while it holds 55% of South Disouq.
"We are pleased to provide an update on our extensive activity across our assets in both Morocco and Egypt, and welcome the opportunity to showcase our Moroccan operations to a number of analysts,” said Paul Welch, SDX chief executive.
“The team at SDX is working hard to deliver on our stated strategy of creating value through the development of our portfolio."
The company noted that it recovered some US$6mln of backdated receivables from Egypt and Morocco in 2017, and it expects to further reduce the amount it is owed this year as well.