Heading home and have spotted the announcement from SDX which details a gas discovery at the SAH-2 well on the Sebou permit in Morocco. This makes a success rate of 5/7 and here the company found 5.2m of net conventional natural gas pay across two zones in the Guebbas and Hoot formations with a porosity of 33%. The well came in on prognosis but the reservoir thickness was above pre-drill expectations. The well benefited by being the first time that the company has used downhole directional tools and it penetrated two targets with a single well bore. I hope to add to that after speaking to Paul Welch on my return.
Following my trip to Morocco I certainly came away even more positive about SDX if that was possible and this news is very encouraging in terms of the plan to increase production to 8-10 MMscf/d by the end of this year. With costs extremely low and gas prices increasing towards $10 and then $12 the outlook for the company is extremely bright as they move to Lalla Mamouna for two exploration wells.
In the lounge and running out of time I have just seen the PANR announcement. I will cover in much more detail on Monday when I have spoken to Jay but I am highly encouraged by the news. Clearly there are some mixed messages but at the 5 well it looks very promising and they appear to be getting to the bottom of the seemingly endless operational problems at VIBM#1. Over at the 4 well the sidetrack has been non-commercial but they may re-enter with a horizontal lateral. News that two separate US groups have approached them to explore possibilities in the Wilcox is very promising indeed. More on Monday when I return home and speak to Jay….