UK’s SDX Energy said it has raised $10 million through a private placement which will see it add to its investments in Egypt and Morocco drilling programmes.
The company will issue new shares representing 9.4 per cent of the pre-funding issued share capital, SDX said in a statement. The largest subscriber is MEA Energy Investments, which now holds a 19.1 per cent stake.
“The net proceeds of the Fundraising will be used to accelerate the Company’s exploration and appraisal programme at its South Disouq asset in Egypt and its development programme across its Moroccan acreage, whilst retaining a prudent level of liquidity,” the North Africa focused oil and gas exploration and production company said.
The funds will help SDX complete South Disouq taking the discovery to first gas in Q1, 2018, drill two additional exploration wells in South Disouq targeting 150 Bscf, drill two additional development wells in Morocco increasing the Moroccan drilling programme to seven development wells and two exploration wells and undertake a potential 3D seismic programme in Morocco to identify further drilling opportunities in 2019.
“The proceeds of the fundraising will be deployed into additional wells which have the potential to pay back very rapidly,” president and CEO Paul Welch said about Egypt and Morocco operations.
The company expects to see cash resources grow from the second half of 2018 reflecting the commencements of first gas in South Disouq and the connection of new gas sales customers in Morocco, it said.
In Egypt, SDX has a working interest in two producing assets (50 per cent. North West Gemsa and 50 per cent. Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. It also has a 55 per cent operated working interest in the South Disouq concession, located in the Nile Delta, where a gas discovery was made by the SD-1X well in 2017. In Morocco, SDX has a 75 per cent working interest in the Sebou concession situated in the Rharb Basin.