SDX has announced an oil discovery at the Rabul 5 well in the West Gharib Concession in Egypt where they have a 50% interest. The well was drilled to 5,280 feet TD and encountered approximately 151 feet of net heavy oil pay across the Yusr and Bakr formations with an average porosity of 18%. After further evaluation the well is likely to be completed as a producer and connected to the central processing facility at Meseda. Paul Welch CEO commented that ‘ this was the thickest section of pay sands seen in the Rabul area to date and demonstrates the significant oil potential in the licence’.
Yet again SDX has demonstrated the ability to find hydrocarbons, this time in Egypt with the first well in the current drilling programme on the concession. With the scope to further increase reserves, production and of course revenue and cash flow the company is well set for another good year. I have said before that the shares are cheap as chips and reinforce that view today.