Sea Dragon Energy (SDX) plans to increase its investment budget in South Disouq concession to $17m rather than the initial $9m stated in the signed agreement with the Egyptian Ministry of Petroleum, the company’s General Manager in Egypt, Ahmed Farid Moaaz, revealed.

According to Moaaz, under the agreement signed with the Ministry, only one well will be drilled in the Phase 1 of the project but the company is prepared to drill additional wells, if the first one is successful and there is sufficient time left on the licencing agreement to allow for the drilling of more wells.

Drilling of the first well is expected to begin before the end of March 2017 and SDX’s plans to drill more are subject to the results of geological surveys carried out on the area. The company has hired Canadian-based Geophysica Torun to carry out the seismic analysis for the South Disouq concession in order to confirm if it is promising.

SDX expects its current oil production, which is between 1.800 and 2,000 bpd to increase once the new well comes on stream, Moaaz said.

The foreign oil exploration and development company operating in Egypt, currently holds the rights to four concessions in the country. They include; South Disouq, North West Gemsa, South Ramadan, and Meseda, Egypt Oil & Gas reports.

Anita Fatunji