AIM-listed explorer SDX Energy (LON:SDX) saw its share price increase by 8.20% to 16.50p (as of 14:25 BST) after publishing the results of a successful flow test from one of its onshore Egyptian permits. Management said that further rigless tests would be carried out and the site would be tied in during 2021.
CEO Mark Reid commented: “We are pleased with these initial well test results which confirms that we have a commercial discovery at the Sobhi well. This discovery increases our South Disouq 2P reserves by approximately 50% given that we sole risked the well. Furthermore, Sobhi has the potential to extend the current South Disouq plateau production of 50 mmscfe/d through to 2023/24 with a low-cost tie in to our existing gas processing plant. To have a commercial gas discovery of this scale at South Disouq is especially pleasing in the current environment as our low cost, fixed price gas development will continue to be highly cash generative for longer“.