The company has announced an operational update this morning from both Egypt and Morocco.
In Egypt the company has signed a rig contract for the ST-6 r ig with the Sino-Tharwa Drilling company for its Ibn Yunus-1X exploration at South Disouq in Egypt. The agreement is for four firm wells and one contingent well and should be available to spud in mid-March. Expect the well to take around 30-40 days and it is targeting the same Abu Madi conventional natural gas bearing intervals that were discovered in the SD-1X well in April 2017. After this well the rig will move back to the SD-1X well discovery for two appraisal wells before moving to the Kelvin-1X exploration prospect.
As previously forecast the company has spudded the Rabul 5 development well on the West Gharib concession in Egypt and is targeting both the Bakr and Yusr oil bearing intervals found in the Rabul 1 and 2 wells. These operations should take approximately 30 days.
In Morocco drilling has been delayed at the company’s KSS-2 development well due to a failure of the top drive unit on the rig. The unit is currently being repaired with drilling set to recommence later today. TD is expected within 7-10 days and with no extra rig charges costs shouldn’t be ‘materially changed’.
With all systems go in Egypt and Morocco SDX shareholders can look forward to a news filled Spring and Summer and the shares look incredibly good value at this level.
Two additional pieces of news From FRR today, firstly they have found another institutional investor who has subscribed for £1.5m worth of shares at 0.452p which is very encouraging indeed, this provides more traction for the interesting operational activity going at present.
On that front the company announces that they have executed a service contract to provide pressure pumping equipment and services for stimulation of zones 9,14 and 15 in the Taribani wells each of the wells T-45, Dinosaur-2 and T39 and for the stimulation of zone F in the Mtsarekhevi gas complex well Ud-2. With the T-45 well progressing as planned things seem to be genuinely looking up for FRR and I look forward to my visit to the operations.