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Rabat – London-listed energy company SDX Energy announced on Friday that it has executed a binding sale and purchase agreement (SPA) for the disposal of the Company’s West Gharib interests in Egypt for $6.6 million.
SDX Energy “continues to progress the binding documentation for the sale of its South Disouq assets,” the company said in a statement, indicating that the buyers are New Horizons LLC and NPC Petroleum Services Ltd.
The UK-headquartered company explained in the statement that by fully existing in Egypt, it aims to grow its Moroccan assets and commit to its energy transition strategy.
In November last year, the company unveiled a new corporate strategy to propel a transition to the production of hybrid and green energy.
Sale proceeds from the Egypt assets will be primarily used to continue to expand SDX’s cash-generative operations in Morocco, where the company is the sole independent producer of gas.
SDX Energy is leveraging its position and pipeline infrastructure to increase gas supply and deliver other energy sources to its customers in Kenitra.
“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-energizing and scaling the Company’s Moroccan upstream business,” said Daniel Gould, Chief Executive Officer.
Read Also: SDX Energy Looks to Transition to Green Energy Production in Morocco
Gould added that the company will 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.”
In recent months, the company has been gradually advancing its operations in Morocco. Earlier this month, SDX Energy announced initiating drilling operations for the Beni Malek-2 well (BMK-2) in the Gharb Basin of Morocco.
In January 2024, SDX Energy announced locking a prepayment deal extension with CITIC Dicastal subsidiary, Dika Morocco Africa (DMA). Totaling $2.1 million, the deal would ensure gas supply for the first quarter of 2024.
The company 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.
