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SDX Energy Sells 50% Working Interest in Egypt License
Wednesday 15 July 2020

UK-based, MENA-focused oil and gas company SDX Energy Plc (AIM: SDX) has disposed of its 50% working interest in the North West Gemsa licence, situated in the Eastern Desert of Egypt, the company said.

The purchaser, Gulf Energy, a private Egyptian oil and gas company, has paid USD 3m in consideration for the company's interest, of which USD 1.4m has been used to discharge the company's remaining liabilities on the licence.

The net USD 1.6m proceeds exceeds management's expectations for the sale of this non-core asset. The disposal is part of SDX's ongoing focus and commitment to capital discipline and careful management of the Group's portfolio whilst also providing additional cash to further strengthen its balance sheet.

SDX is an international oil and gas exploration, production and development company, headquartered in London, United Kingdom, with a principal focus on MENA.

In Egypt, SDX has a working interest in three producing assets: a 55% operated interest in the South Disouq gas field in the Nile Delta, a 50% non-operated interest in the West Gharib concession, which is located onshore in the Eastern Desert, adjacent to the Gulf of Suez, and a 12.75% non-operated interest in the South Ramadan concession offshore Gulf of Suez.

In Morocco, SDX has a 75% working interest in five development/production concessions, all situated in the Gharb Basin.

The producing assets in Morocco are characterised by attractive gas prices and exceptionally low operating costs. SDX has a strong weighting of fixed price gas assets in its portfolio with low operating costs and attractive margins throughout, providing resilience in a low commodity price environment.
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Date Published: 15/07/2020

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