#Country Updates #Eygpt #News #Upstream Exploration & Production

SDX Energy extends West Gharib PSA for ten years to 2031

AIM-listed SDX Energy, the MENA-focused oil and gas company, has received final approval from the Egyptian authorities to extend the Production Services Agreements governing its producing Meseda and Rabul oil fields in its West Gharib concession in Egypt until 9 November 2031.  

Mark Reid, CEO of SDX, commented:

‘We are very pleased to have secured this ten-year extension to the Production Services Agreement which we estimate increases SDX’s share of reserves in our core West Gharib oil asset, certified at 2.2 million barrels in our 31 December 2019 CPR, by 60%.  With a breakeven price of approximately US$20 Brent and to take advantage of the current strong oil price, we plan to commence in Q2 of this year, a drilling programme of up to twelve wells over the next three years with the goal of growing gross production back to around 3,000bbl/d.  This drilling programme is in line with the capex guidance provided to the Market in our 26th January 2021 update.

We would like to thank our partners The General Petroleum Company, a wholly owned subsidiary of the Egyptian General Petroleum Corporation, and Dublin Petroleum Limited for their valuable co-operation in agreeing this extension.’

The key terms of the extension, in which SDX has a 50% working interest, are as follows:

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Source: Energypedia

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