Oil company SDX Energy said an exploration well in Egypt had failed to find gas.

The HA-1X exploration well on the Hanut prospect was spudded on 4 August and reached a target depth of 6,000 feet.

Its primary target was the Basal Kafr El Sheikh sand at about 5,200 feet.

'The well however found that the Basal Kafr El Sheikh sand had been eroded at this location,' SDX said.

'Whilst drilling to target depth, good quality sands were found at the Qawasim level, however they were not charged with gas.'

Chief executive Mark Reid said while the result was disappointing, he remained positive about the remaining prospectivity in the area.

'In particular, I am encouraged by the proof of reservoir quality sands in the Qawasim Fm in the South Disouq area as this derisks further close by prospectivity,' he said.

'The company will now be working towards moving these prospects to drill-ready status for a 2022 campaign and looks forward updating the market on its campaigns in West Gharib and in Morocco in the remainder of the year.'