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SDX Energy Conducted Successful Production Test at SD-3X Well

Source: www.gulfoilandgas.com 8/17/2018, Location: Egypt

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SDX Energy Inc., the North Africa focused oil and gas company, has announced that a successful production test has been conducted at its SD-3X appraisal well at South Disouq, Egypt (SDX 55% working interest and operator).

The well flowed at a maximum rate of 16.1 MMscfd of conventional natural gas during an eight hour clean up period and was then shut in for eight hours, during which time no pressure decline was observed. Following this, by varying choke sizes, the well was flowed for two successive six-hour periods at average rates of 5.3 MMscfd and 8.4 MMscfd respectively and one extended flow period of 12-hours at an average rate of 10.5 MMscfd.

The SD-3X well was subsequently shut in for a pressure build-up of 96 hours, which is currently on-going. At completion of the build-up, the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production facilities. During testing a total of 12.02 MMscf of conventional natural gas was produced.

Paul Welch, President and CEO of SDX, commented:

"We are very pleased with the test results of the SD-3X well as it exceeded our expectations. The well is located the furthest down dip on the structure and had the least amount of pay when compared to the two offset wells. We therefore limited both the test duration and peak rates to ensure that no damage was done to the well whilst testing it. The well performed in line with the offsets even with the reduced pay section. We are now very confident that we can achieve the peak rates at the planned facility at South Disouq of 60MMscfd of conventional natural gas with our current well stock. We intend to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months. We are targeting a late Q4 2018 start-up of production in South Disouq. The rest of our portfolio of assets continues to perform well and I look forward to updating our shareholders on all of our activity when we release our Q2 results on August 28, 2018.”

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