SDX Energy said a well in Morocco achieved a commercial flow rate and would be connected to existing local infrastructure.
The ONZ-7 well, using a 48/64 inch choke, achieved an average flow rate of conventional natural gas of 10 million standard cubic feet per day.
The well would now be shut in for several days for a pressure build-up before processing.
'Today's positive update on ONZ-7 reaffirms our view that the Sebou permit has the potential to be highly cash generative for SDX,' chief executive Paul Welch said.
At 9:23am: (LON:SDX) SDX Energy Inc. share price was -1.25p at 47.25p