SDX is pleased to announce that it has commenced drilling the Beni Malek-2 well ("BMK-2") in the Rharb Basin, Morocco, approximately 1.5km from the BMK-1 discovery well. The BMK-2 well will be drilled to a planned depth of approximately 1,470 metres and is targeting three stacked reservoirs in the Guebbas formation, which have been identified using 3D seismic.
This well follows the success of the KSR-21 well drilled in September 2023 and is part of an ongoing drilling campaign in Morocco. If BMK-2 is a success, the well will be completed and tied-in for production as quickly as possible, to supplement existing production and, in particular, provide to CITIC Dicastal, which is the Company's largest offtaker and has an immediate and increasing demand for SDX's gas.
In Morocco, the Company is the sole independent gas producer and has ambitions to be a major gas producer and works closely with its partner, Office National des Hydrocarbures et des Mines ("ONHYM") on all aspects of development and production. The gas from SDX's wells is sold to multiple offtakers in the Kenitra industrial area.