SDX starts production in the KSR-21 well in the Gharb

Abdelhafid Marzak

April 30, 2024 at 11:09

SDX Energy starts gas production from its KSR-21 well in the Gharb basin. The British gas exploration company announces that it has received all the necessary regulatory approvals for this purpose. This well is already connected to its existing infrastructure.

The start of production comes a week after the company’s announcement regarding the sale of its assets in Egypt, starting with its interests in the prospecting area West Gharib (for $6.6 million), to focus on its assets in Morocco. It has already received the first funds from this transaction ($3.5 million).

Moreover, the proceeds from these transfers will be used, in large part, to finance its operations in the Kingdom. This refocusing on Morocco is part of the company’s new strategy, announced in November 2023, which tends towards the production of renewable and hybrid energy.

At the beginning of the month, SDX started drilling work on the well Beni Malek-2, in the Gharb. The operation is part of an ongoing drilling campaign in Morocco. If the results of this well are satisfactory, it will be used to support existing production and, in particular, provide gas to CITIC Dicastalwhich is the largest buyer of SDX Energy.

SDX’s operations are not limited to prospecting and exploration activities. In January 2024, the company obtained an extension of the advance payment agreement with CITIC subsidiary Dicastal, Dika Maroc Afrique (DMA), guaranteeing a stable gas supply for the first quarter of the year. The company also manages a number of operating concessions with producing wells.

SDX’s customer book includes eight manufacturers, so far, who buy gas at contract prices of between $10 and $12 per thousand cubic feet (Mcf). SDX’s goal is to produce 15 billion cubic feet of gas in Morocco.