Shares of oil and gas exploration firm SDX Energy have plunged on Wednesday after the company described the results of the HA-1X exploration as disappointing.
The primary target for HA-1X was the Basal Kafr El Sheikh sand at approximately 5,200ft.
However, the company found that the Basal Kafr El Sheikh sand had been eroded at this location. “While drilling to target depth, good quality sands were found at the Qawasim level, however they were not charged with gas,” stated SDX.
SDX did state that as Hanut was a unique subsurface feature in the South Disouq acreage, it considers the result of the HA-1X well to have a limited impact on the remaining prospectivity in the SDX acreage at South Disouq.
Mark Reid, CEO of SDX, commented: “Whilst the result of this well is disappointing, I remain positive about the remaining prospectivity in the area which has not been materially impacted. In particular, I am encouraged by the proof of reservoir quality sands in the Qawasim Fm in the South Disouq area as this derisks further close by prospectivity.
“The Company will now be working towards moving these prospects to drill-ready status for a 2022 campaign and looks forward updating the market on its campaigns in West Gharib and in Morocco in the remainder of the year.”
SDX shares have fallen 11.63% to 12.7p so far on Wednesday. In 2021 its shares have lost over 29% in value.
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