SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to announce that it has increased its presence in Morocco with the awards of the Moulay Bouchta Ouest and Lalla Mimouna Sud licenses.
The Moulay Bouchta Ouest exploration licence (SDX 75% working interest and operator), covering an area of 458 km2, has been awarded to SDX for a period of eight years. SDX has a commitment to reprocess 150 kilometres of 2D seismic data, acquire 100 km2of new 3D seismic and drill one exploration well within the first three-and-a-half-year period.
SDX has also been re-awarded the Lalla Mimouna Sud licence (SDX 75% working interest and operator), which covers an area of 857 km2, for a period of eight years. This permit was part of the original group of concessions that SDX acquired as part of the Circle Oil acquisition in 2017. The concession expired after all the work commitments had been fulfilled and SDX reapplied for the acreage after the acquisition of additional 3D seismic in the area. The Company has a commitment to acquire 50 km2 of 3D seismic and drill one exploration well within the first three-year period.
Paul Welch, President & CEO of SDX Energy, commented:
"We are very pleased to be expanding our acreage in Morocco, which we see as a key growth region for SDX going forward. Both of these permits offer significant underexplored hydrocarbon potential and are located adjacent to our existing operations and infrastructure, so can be tied into our facilities quickly. The award also gives SDX and its partner control over the entire onshore Gharb Basin.
We have an active work programme planned for Morocco in 2019, with a 12 well drilling programme set to commence in H2. With the addition of these new permits, we will be able to further grow our reserves and production base in Morocco, and generate significant value for our stakeholders, as we look to build upon our market leading position in country."