SDX Energy announced that it has disposed of its 50% working interest in the North West Gemsa licence, situated in the Eastern Desert of Egypt.
Gulf Energy, a private Egyptian oil and gas company, has paid US$3 million in consideration for the interest, of which $1.4 million has been used to discharge the Company's remaining liabilities on the licence.
SDX said that the disposal is part of its ongoing focus and commitment to capital discipline and management of its portfolio whilst also providing additional cash to further strengthen its balance sheet.
Mark Reid, CEO of SDX, commented: "We are pleased to complete the sale of our interest in the North West Gemsa licence. Whilst we have presented our interest in the licence as non-core for some time, owing to its reducing production and marginal netbacks, it is a welcome outcome to be exiting the licence with a useful cash consideration and also avoiding the upcoming associated budgeted capex of approximately $2 million for the year. This deal demonstrates our continued focus on portfolio and capital management, and we look forward to recycling the cash into projects that will further enhance and grow our business in the future."