British company SDX Energy discovered gas in Morocco less than a month after the start of drilling the KSR-21 well in the on-shore Sebou concession.
The British company declared, in a press release published Friday, September 29, 2023, to have found sand loaded with gas in the well located in the Sebou area, in the Gharb basin, between the Rif in the north, the Middle Atlas and the Méseta to the south, after successfully drilling it to a depth of 1,955 meters.
The British company stressed that the well in which gas was discovered in Morocco will be subjected to a short-term test before being put into production.
SDX Energy recently managed to sign a non-binding gas advance payment agreement with Dika Maroc Afrique, its largest customer, to pay in advance for Moroccan gas shipments.
The initial terms of the agreement provided for the withdrawal of two million US dollars by the end of September, in order to finance the costs of drilling the KSR-21 well.
Earlier this month, the company released images of the start of well drilling operations, through the use of 3D seismic scanning technology, targeting a specific area within the main formation of the Gharb Basin.
SDX is currently negotiating new terms for a larger advance payment, which is expected to be agreed and funds withdrawn by early 2024.
A first step in the new SDX roadmap
The company plans to direct the second advance towards financing a successive multi-well drilling program to explore Moroccan gas, according to the press release.
The British company has drilled more than 20 production wells in the same basin, and the new well represents a low-risk location, as it can be put into production immediately and supply existing customers with Moroccan gas, as part of the improvement in gas prices announced in June.
The company’s general manager, Daniel Gold, had confirmed, in previous statements, that “the start of drilling represents a first step in SDX’s new roadmap in Morocco, which the company will present shortly”.
He added: “As part of the reactivation of the company’s initial production, we will evaluate the feasibility of drilling additional wells, successively,” explaining that this type of program would reduce the capital expenditure for each well, guarantee the operational efficiency and would add sufficient gas reserves to meet current and future demand.
