UK exploration and production company SDX Energy has finalized a binding sale and purchase agreement for its West Gharib interests in Egypt, fetching $6.6 million. The buyers, New Horizons LLC and NPC Petroleum Services Ltd, signify SDX Energy's strategic shift, focusing on expanding its Moroccan assets and advancing its energy transition strategy. Proceeds from the Egypt asset sale will primarily fuel SDX's cash-generative operations in Morocco, where it stands as the sole independent gas producer, leveraging its position to enhance gas supply and introduce alternative energy sources to customers in Kenitra.
SDX Energy's strategic maneuvers reflect its dedication to sustainable growth and diversification. With ongoing drilling operations in Morocco's Gharb Basin and a prepayment deal extension securing gas supply into 2024, the company demonstrates its proactive approach to solidifying its position in the energy market. The successful connection of the KSR-21well to existing infrastructure underscores SDX Energy's operational efficiency and readiness to commence production pending regulatory approval, showcasing its commitment to operational excellence and value creation for stakeholders.