GAS SDX ENERGY INC.
("SDX" or the "Company")
Gas discovery at KSR-15 well, Morocco
SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that a gas discovery has been made at its KSR-15 development well on the Sebou permit in Morocco (SDX 75% Working Interest).
The KSR-15 well was drilled to a total depth of 1,774 meters and encountered 17.2 meters of net conventional natural gas reservoir section across 4 intervals. The primary target, the Hoot sand, had an average porosity of 29%. This is the highest average porosity recorded for the Hoot sand in the basin. The quality of the Hoot exceeded our pre-drill estimates and, once the drilling rig has left the location, the Company expects that the well will be connected to the existing infrastructure and on production in early December.
The previously drilled KSR-14 well has been connected to the existing infrastructure and it is anticipated that testing will commence this week. Those test results will be reported in a separate release when available.
Paul Welch, President and CEO of SDX, commented:
"We are pleased to be announcing another successful result from our Moroccan drilling campaign as we continue to build real momentum with this programme. It is also very encouraging to have connected the first well and I look forward to reporting on the test results in due course. These first two successful wells keep moving us closer to achieving our target of increasing local gas sales volumes in Morocco by up to 50% in 2018"
About SDX
SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Rharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX's portfolio also includes high impact exploration opportunities in both Egypt and Morocco.
For further information, please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com.
For further information:
| SDX Energy Inc. Paul Welch President and Chief Executive Officer Tel: +44 203 219 5640 | Mark Reid Chief Financial Officer Tel: +44 203 219 5640 |
| Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker) Callum Stewart Ashton Clanfield Tel: +44 (0) 20 7710 7600 Cantor Fitzgerald Europe (Joint Broker) Sarah Wharry Tel: +44 207 7894 7000 |
| GMP FirstEnergy (Joint Broker) Jonathan Wright/David van Erp Tel: +44 207 448 0200 |
| Celicourt (PR) Mark Antelme/Joanna Boon/Jimmy Lea Tel: +44 207 520 9260 |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.