North Africa-focused energy explorer SDX Energy has made a gas discovery in Egypt’s Nile Delta.
The Alternative Investment Market-listed firm found gas at its SD-1X well on a plot where the group holds a 55 per cent equity interest. Drilling will now continue to deeper sections where it is targeting oil.
The South Disouq concession, where the gas was discovered, is one of SDX’s two “high-impact exploration opportunities” – the other is based in Morocco.
“It is clearly very encouraging to have made a gas discovery at the first of SD-1X’s target intervals,” said chief executive Paul Welch.
“This provides us with additional encouragement for the deeper horizons where we are targeting oil.”
Full-year revenues at SDX rose to $12.9m (£10.3m) in 2016, up from $11.4m in 2015.
However, the group made a $28m loss following a writedown of a similar amount. Most of this was incurred when it withdrew from a concession based in Cameroon.