We up­date our views on SDX En­ergy and Im­pax As­set Man­age­ment

(SDX:AIM) 52p

Shares - - CONTENTS -

Gain to date: 35.9% Original en­try point: 38.23p, 2 Fe­bru­ary 2017

NORTH AFRICAN OIL and gas pro­ducer SDX En­ergy (SDX:AIM) is head­ing in the right di­rec­tion again after an­nounc­ing a dis­cov­ery on its West Garib con­ces­sion, on­shore Egypt.

The Rabul 2 well looks to have iden­ti­fied a larger find than that de­liv­ered by the Rabul 1 well drilled in July, with 105.1 feet of net pay.

A reser­voir or por­tion of a reser­voir which con­tains oil or nat­u­ral gas eco­nomic to pro­duce is known as ‘pay’ as it is lit­er­ally ca­pa­ble of ‘pay­ing’ an in­come. Net pay is what is left after ap­ply­ing fur­ther cri­te­ria such as how much oil can pass through the rock in the sub-sur­face.

The re­main­der of the year is likely to see fo­cus switch to Morocco where the com­pany plans to drill seven wells. Five devel­op­ment wells will be drilled on the al­ready-pro­duc­ing Se­bou per­mit and two ex­plo­ration wells will be drilled on the Lalla Mi­mouna per­mit.

Can­tor Fitzger­ald an­a­lyst Sam Wa­hab says: ‘All lo­ca­tions in the Se­bou per­mit are ad­ja­cent to ex­ist­ing in­fra­struc­ture and there­fore we be­lieve the wells can be placed on pro­duc­tion quickly in a suc­cess case.’

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.