(MENAFN - ProactiveInvestors - N.America) SDX Energy (CVE:SDX) has told investors that the Manatee-1 exploration well in the Bakassi West acreage offshore Cameroon has now spudded.
The well which is described by the company as potentially high impact is being drilled by the Paragon M825 jack-up rig in the prolific Niger Delta basin.
It will be drilled to a depth of 1550 metres. The programme is operated by Dana Petroleum a subsidiary of the Korea National Oil Company and it is expected to last for 45 days.
SDX is a material stakeholder in the exploration venture with a 35% stake in the project and chief executive Paul Welch believes it could prove to be a transformation project if the well is a success.
'The data we have acquired on this block provides strong evidence that this prospect is very similar to the Abana field which has been a strong oil producer since it came on stream' Welch said in a statement.
'In the success case of an oil discovery we believe that an accelerated development plan could be put together given the shallow water location and the example set by Abana which achieved first production less than 24 months after the target depth of the discovery well.'
Manatee-1 is located in the South Western corner of the Bakassi West blockm and it has been prioritised because of perceived similarities with Abana which is just 7 kilometres away
Abana came on-stream in 1999 producing at a plateau rate of around 30000 barrel of oil per day and it had reported high quality light oil reserves totalling 85mln barrels.
Welch highlighted that Bakassi West contains numerous exploration prospects and leads which would be significantly de-risked if the Manatee well is a success.
'This is the first of two high impact exploration wells we plan to drill this year and represents the first major catalyst for SDX Energy's shareholders since the successful merger in October of last year' Welch added.
'We are fortunate to be in a position whereby we are generating positive cash flow from our Egyptian assets whilst testing high impact exploration opportunities that have the potential to transform the company.'