SDX Energy, a British oil and gas exploration company working in the MENA region, reached a non-binding agreement to divest of all its Egyptian assets by the end of Q4 of 2023.
This divestment will free up assets for SDX to better support Morocco’s energy transition, according to a press release published on Wednesday.
The British company, which currently owns a portfolio of exploration, development, and production assets in Egypt and Morocco, said the potential buyer, whose name was not disclosed, is a “large multinational operator” with existing interests in Egypt.
Subject to shareholder approval, given that the consideration “will significantly exceed” the market capitalization Consideration Test threshold and that the divestment “will constitute a fundamental change to the business” under AIM (Alternative Investment Market) regulations.
Managing Director Daniel Gould stated “The planned sale of SDX’s Egyptian assets will be a significant milestone on the Company’s transition roadmap that we will soon be presenting to our shareholders.”
SDX, re-energised with new management, will focus on monetising exciting opportunities around its Moroccan assets and related energy transition sector-plays in order to reward and deliver capital growth to our shareholders in the near term.
Since its establishment in 2015, SDX has held a significant and diverse interests across its Moroccan portfolio, including exploration in Sebou Centra, Gharb Occidental, Moulay Bouchta Ouest, and Lalla Mimouna Sud.