SDX rejects offshore Cameroon license proposal
SDX Energy is withdrawing from the Bakassi West concession in the shallow-water Rio Del Rey basin offshore Cameroon.
In March, operator Dana Petroleum discovered gas in theManatee-1X exploration well, which intersected 26 m (85 ft) of gas-bearing section of varying quality through the wellbore.
However, wellbore conditions did not permit acquisition of a full suite of logging tools in the deeper sections of the hole making analysis of the lower intervals in the well inconclusive, SDX said.
However, Cameroon’s authorities did not approve a proposed one-year extension and instead requested the partners to enter into a second exploration period, which carried an additional well commitment: SDX declined.
Paul Welch, the company’s CEO, said: “The Bakassi West concession is not a core asset to our business and we do not believe it would have been prudent to continue investing in it. [It] was acquired by SDX in October 2015 as a result of a merger between Sea Dragon Energy and Madison PetroGas.”
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