Rabat – SDX Energy was trading in positive territory on Tuesday morning after the company disclosed a gas prepayment deal extension with CITIC Dicastal subsidiary, Dika Morocco Africa (DMA). The agreement, totaling $2.1 million, ensures gas supply for the first quarter of 2024.
In a statement, the UK-headquartered company said that it “continues to work directly with CITIC Dicastal to provide a long-term offtake agreement, demonstrating the support of CITIC Dicastal, a company with nearly $1 trillion in assets.”
SDX Energy further announced that the KSR-21well, which was successfully drilled and tested in Q4 2023, has now been connected to existing infrastructure and will begin producing as soon as the company gains regulatory approval.
The company equally updated its stakeholders on the progress made in diverting assets in Egypt. According to the statement, SDX Energy confirmed that it has agreed with a buyer on the terms of an agreement to sell its West Gharib assets in Egypt. They equally declared that the closing of the transaction remains subject to the completion of certain approvals, including Egyptian government approvals.
The company says it expects to finalize the deal in the second half of January 2024. Proceeds from the sale of the West Gharib assets are expected to be $6.9 million.
Of the total West Gharib sale proceeds, approximately $3.8 million will be paid immediately. The remaining $3.1 million, which is subject to certain post-close events, is expected to be paid during Q1 of 2024.
Meanwhile, the British company says it finalized the selling of its remaining Egyptian asset, South Disouq, with terms “largely agreed”. The sale of this SDX-operated asset is also subject to government and joint venture partner approvals.
SDX holds 75% working interest across its Moroccan portfolio, which includes exploration permits in Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud, plus a number of exploitation concessions containing the producing wells.
SDX sells the gas produced by its Moroccan assets to eight customers at contracted prices of between $10-$12 per thousand cubic feet (Mcf), according to the company’s website.
Read Also: SDX Energy Completes Testing Operations on KSR-21 Well in Morocco
