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SDX Energy Will Leave Egypt, to Concentrate on Morocco

The British minnow, SDX Energy, is close to selling its Egyptian assets, as part of a transition roadmap to “monetize exciting opportunities around its Moroccan assets and related energy transition sector-plays”, the company has said.

SDX ‘s Egyptian portfolio contains interests in six concessions in Egypt and Morocco. In Egypt, the Company has a working interest in two producing assets, such as a 55% operated interest in the South Disouq concession in the Nile Delta and a 50% non-operated interest in the West Gharib concession located onshore in the Eastern Desert adjacent to the Gulf of Suez.

In Morocco, the company  has a 75% operated working interest in four exploration permits, all situated in the Gharb Basin, which includes the Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud exploration permits, plus a number of exploitation concessions containing the producing wells.

SDX says it has entered into a non-binding Heads of Terms with a large multinational operator to divest of all of its Egyptian assets in a move to optimize its asset portfolio and focus on the Moroccan energy transition sector. The company expects to close the transaction by the end of 2023.

SDX states that the “Disposal will position the company for upcoming diversification into Morocco’s energy transition sector. Moving towards the energy transition narrative also gives access to a wider pool of capital, setting SDX on a new path of growth with the ultimate aim of delivering sustainable returns for shareholders.”

The Disposal will require the consent of SDX shareholders being given in a general meeting. Completion of the Disposal will be subject to, among other conditions, the negotiation of final transaction documentation and obtaining Egyptian government approvals for the sale. The Heads of Terms are non-binding and, therefore there can be no certainty that the Disposal will complete, SDX states.

Once the sale goes through, “SDX, re-energized with new management, will focus on monetizing exciting opportunities around its Moroccan assets and related energy transition sector-plays”, says Daniel Gould, Managing Director. This is “in oder to reward and deliver capital growth to our shareholders in the near term.”

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