DX Energy, the London-listed energy giant, has set the wheels in motion for its latest drilling endeavor in Morocco. The company announced on Wednesday the commencement of drilling operations for the Beni Malek-2 well (BMK-2) situated in the Gharb Basin.
In a strategic move, SDX Energy has positioned the BMK-2 well approximately 1.5 kilometers away from its previous BMK-1 discovery well. Leveraging advanced 3D seismic technology, the new well is slated to penetrate three stacked reservoirs within the Guebbas formation, marking a significant advancement in precision targeting for the company.
With a planned drilling depth of approximately 1,470 meters, BMK-2 is poised to play a crucial role in SDX’s ongoing exploration endeavors in Morocco. The initiative follows the success of the KSR-21 well, which was drilled back in September 2023.
The significance of BMK-2 goes beyond mere exploration for SDX Energy. The company has expressed intentions to swiftly integrate any successful findings into its production infrastructure, aiming to bolster existing production levels. This move is especially crucial considering SDX’s prominent client CITIC Dicastal, for whom SDX serves as the largest gas supplier. The gas supplied by SDX Energy caters to the demands of multiple offtakers within the Kenitra industrial area.
Maintaining a close collaborative partnership with the Office National des Hydrocarbures et des Mines (ONHYM), SDX Energy continues to work across various development and production facets in Morocco.
In a recent disclosure in January 2024, SDX Energy extended its gas prepayment deal with CITIC Dicastal subsidiary, Dika Morocco Africa (DMA), amounting to $2.1 million. This extension secures gas supply for the first quarter of 2024.
Furthermore, SDX Energy announced the successful connection of the KSR-21 well to existing infrastructure in Q4 2023, awaiting regulatory approval to commence production.
In parallel, the company has confirmed an agreement with a buyer for the sale of its West Gharib assets in Egypt. However, the closure of this transaction remains contingent upon the completion of certain approvals, including those from the Egyptian government.
SDX Energy's latest venture in the Gharb Basin signals a promising trajectory for its operations in the region, reflecting its commitment to advancing exploration and production activities while navigating strategic partnerships and transactions.
