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UK-based oil and gas company SDX Energy announced on Friday the signing of a definitive agreement to sell its West Gharib assets in Egypt for an estimated $6.6 million as part of its strategy to exit Egypt and focus on Morocco.
The assets have been sold to New Horizons and NPC Petroleum Services, the AIM-listed company said in a statement.
SDX Energy is also working on finalising the sale of its remaining Egyptian assets, in South Disouq, the statement noted.
The proceeds from West Gharib will be received outside Egypt and mainly used to continue to expand SDX's cash generative operations in Morocco, where the Company is the sole independent producer of gas.
The company is leveraging its position and pipeline infrastructure to increase gas supply and deliver other energy sources to its customers in Kenitra.
The proceeds will also be used to repay in full the outstanding secured EBRD reserves-based lending facility, the statement said.
Daniel Gould, Chief Executive Officer, commented: “The sale of our West Gharib assets represents a milestone in the execution of our new growth strategy in Morocco. SDX will continue to deliver shareholder value and growth - re-energising and scaling the Company's Moroccan upstream business. We will also continue to carry out due diligence for SDX's medium-term expansion into the vertical adjacencies of gas transportation, gas-to-power, and renewable energy generation.”
(Writing by SA Kader; Editing by Anoop Menon)
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