At Meseda, SDX has a 50% working interest with partner, Dublin Petroleum. They have updated the technical performance of the field discovered in 2011 and are planning recompletions and a water flood to improve performance. The field was producing 3,726 boe/d gross in March 2016 and with successful recompletions, treating facilities improvements and a water flood, production could rise to 8K boe/d gross in Q2 or Q3/17. An exploration well should be drilled in 2H/17 at Yusr-1 on the Meseda block. If they drill down to the Nubia level at 8,000 feet, (at a total cost of $1.2M) they see a target on seismic with 60Mb of potential recoverable oil. We hope this deeper target is chosen. In 2017 a 5-well workover program, a 2-well infill program and a 2-well exploration program are planned. None of these plays have been factored into our forecast either.
In Morocco, SDX plans on drilling up to five wells in 2H/17 looking to add new supplies of natural gas for current and new customers at Sebou. At Lalla Mimouna they will also drill two prospects. Current prices for natural gas in Morocco are US$9.00/mcf and new deals are being signed at US$12.00/mcf. There is a shortage of natural gas in the country and the main source is imported bottled gas, which sells for US$18/mcf. SDX gross sales volumes now are 6.2Mmcf a day and could double over the next 12 months with drilling success. They have the infrastructure in place to bring any new productive capacity on fairly quickly.