An update this morning from SDX on well ONZ-7 on the Sebou permit in Morocco. The well has been completed and tested and has achieved an average flow rate of conventional natural gas of 10 MMscf/d. The well will now be shut in for several days for a pressure build up after which it will be connected to the local infrastructure.
This is another good result from the Sebou permit which is proving to be an outstanding investment by SDX and seems to get better all the time. The maximum flow rate during the drill was 15.34 MMscf/d and is the highest achieved to date in the basin and ‘provides further confidence in being able to deliver our gross production target of 8-10 MMscf/d of conventional natural gas in Morocco by the end of 2018’.
The recent visit to SDX in Morocco showed that these expectations are totally achievable and that this production is extraordinarily high margin, today’s fall in the share price as a result of recent market weakness is therefore an opportunity not to be missed.