UK's SDX makes 24 Bcf gas find at own-operated Egyptian block

London — UK-listed upstream junior SDX Energy has made a new gas discovery at its flagship South Disouq block onshore Egypt with recoverable gas and condensate reserves estimated at 24 Bcf, the company said Wednesday.

SDX -- which started production at South Disouq in November last year -- has already reached plateau production of 50 MMcf/d and the new Sobhi discovery is expected to extend that output level into 2023-24.

A gross production rate of 50 MMscf/d at South Disouq is the equivalent of around 1.5 million cu m/d of gas production -- or 0.5 Bcm/year.

Egypt's gas production has been rising rapidly in recent years, thanks mostly to the Eni-operated supergiant Zohr field, but smaller projects have also been making a material contribution.

"The Sobhi discovery has the potential to extend the current South Disouq plateau production of 50 MMcf/d through to 2023/24 with a low-cost tie in, utilizing the existing gas processing plant," SDX CEO Mark Reid said in a statement.

"South Disouq represents our flagship asset and in the current economic climate this fixed price, low cost gas development is highly cash generative for the group," Reid said.

All of SDX's Egyptian gas production is sold to the Egyptian national gas company, EGAS, at a fixed price of $2.85/Mcf, with the government of Egypt's entitlement share of gross production equating to approximately 51%.