Successful Production Test at SD-4X Well in Egypt

SDX Energy Inc. (SDX), the North Africa focused oil and gas company, is pleased to announce that a successful production test has been conducted at its SD-4X appraisal well at South Disouq, Egypt (SDX 55% working interest and operator).

The well flowed at a maximum rate of 30.4 MMscfd during an eight hour clean up period and was then shut in for eight hours, during which time no pressure decline was observed. Following this, by varying choke sizes the well was flowed for two successive 12-hour periods at average rates of 5.4 MMscfd, 8.6 MMscfd respectively and one extended flow period of 24-hours at an average rate of 10.5 MMscfd.

The SD-4X well was subsequently shut in for a pressure build-up of 120 hours, which is currently on-going. At completion of the build-up the downhole pressure gauges will be retrieved and the well suspended prior to being connected to the local production facilities. During testing a total of 23.38 MMscf of conventional natural gas was produced.

In addition, the Company is pleased to announce that the acquisition of 240km2 of 3D seismic in the Gharb Centre in Morocco has commenced. The seismic acquisition operations are anticipated to take between 45 and 60 days after which the data will be processed and interpreted during Q4 2018.

Paul Welch, President and CEO of SDX, commented:
"We are very pleased to report another successful production test result, at our SD-4X appraisal well in South Disouq. We intend to connect this well to infrastructure located adjacent to our SD-1X discovery over the coming months. We are targeting a late Q4 2018 start-up of production in South Disouq and this well test result provides us with additional confidence to deliver on our planned plateau rate of 50 MMscfd of conventional natural gas.

The commencement of our 3D seismic programme in the Gharb Centre, Morocco also shows further operational progress across the portfolio. The survey will be the largest and highest resolution 3D seismic dataset in the Gharb basin to date and we remain very optimistic on the results and its ability to deliver additional exploration prospects for our next drilling campaign in Morocco.”

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