SDX Energy makes gas discovery in Egypt’s Nile Delta

SDX Energy makes gas discovery in Egypt’s Nile Delta

North Africa-focused energy exploration firm SDX Energy (LSE:SDX) has announced the discovery of gas in Egypt’s Nile Delta.

The gas discovery was made at its SD-1X well, on a plot where the AIM-listed firm holds a 55% equity interest.

Further drilling will now commence to deeper sections as SDX targets oil to complement its natural gas find in the resource-rich region.

This discovery is the latest in a succession of finds across the Nile Delta region, including BP’s recent gas discovery last month, the oil major’s third find in the North Damietta Offshore Concession block.

SDX said the South Disouq concession, where the gas was discovered, is one of two high-impact exploration opportunities, with the second prospective area based in Morocco.

President and CEO Paul Welch said: “It is clearly very encouraging to have made a gas discovery at the first of SD-1X’s target intervals.

“This provides us with additional encouragement for the deeper horizons where we are targeting oil.”

Full-year revenues at SDX rose to US$12.9m in 2016, despite the group making a $28 million loss, following the withdrawal from a concession based in Cameroon.

@RGNonline