SDX sells West Gharib asset in Egypt for $6.6mn

London-listed SDX Energy has signed a binding sale and purchase agreement (SPA) with New Horizons and NPC Petroleum Services for the divestment of its West Gharib asset in Egypt for $6.6mn, the company announced on April 19. Simultaneously, SDX is advancing the binding documentation for the sale of its South Disouq asset.

"The company is focused on delivering shareholder value by concentrating its efforts on fully exiting Egypt, expanding its Moroccan assets, and executing its energy transition strategy," it said.

SDX will receive approximately $3.5mn in cash, payable immediately outside of Egypt, approximately $0.9mn in cash, payable within five business days of SDX depositing approximately $0.6mn into an escrow account, and approximately $2.2mn in cash, payable within five business days of SDX depositing a further $1.4mn into an escrow account or settlement of any tax liability in full.

Proceeds from the sale will be received outside Egypt and primarily used to expand SDX's cash generative operations in Morocco. Additionally, the company plans to fully repay the outstanding secured EBRD reserves-based lending facility.

SDX holds a 75% operated working interest across its Moroccan portfolio, which includes the Sebou Central, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud exploration permits, along with a number of exploitation concessions containing the producing wells. SDX sells the gas produced by its Moroccan assets to eight customers.