TIDMSDX
RNS Number : 0148Z
SDX Energy PLC
09 January 2024
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"),
THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.
9 January 2024
SDX ENERGY PLC ("SDX" or the "Company")
CORPORATE UPDATE
Highlights
-- Gas prepayment agreement rolled over with CITIC Dicastal
subsidiary, DIKA MOROCCO AFRICA ("DMA"), for a further $2.1 million
for Q1 2024 gas deliveries.
-- The Company continues to work with CITIC Dicastal on a
long-term prepayment for future gas deliveries in Morocco.
-- Latest well, KSR-21, is tied-in and ready to supply SDX's offtakers.
-- Egyptian West Gharib asset sale documentation agreed with
execution and closing expected later in January, subject only to
administrative steps being completed.
-- Implementation of new strategy, including detailed cost
review and balance sheet optimisation by swapping $1 million of
cash-backed bank guarantee with a parent company guarantee.
Morocco - SDX/CITIC strengthen partnership
The Company is pleased to announce that it has reached agreement
for a second 3-month gas prepayment with its largest offtaker in
Morocco on the same terms as the previously announced, Q4 2023
prepayment. The prepayment by DMA covers the supply of gas by SDX
for the first quarter of 2024 and is approximately $2.1
million.
Additionally, the Company continues to work directly with CITIC
Dicastal to provide a long-term offtake agreement, demonstrating
the support of CITIC Dicastal, a company with nearly $1 trillion in
assets.
Morocco - KSR-21 well update
The KSR-21 well, which was successfully drilled and tested in Q4
2023, has now been tied into existing infrastructure and will begin
producing as soon as the expected government approvals are
received, which are envisaged shortly. The Company will update
shareholders as soon as production from this well has
commenced.
Egypt - sale update
SDX is pleased to confirm that it has agreed with the buyer the
terms of an execution version of the sale and purchase agreement
("SPA") for its West Gharib assets.
The closing of the transaction remains subject to the completion
of certain approvals, including Egyptian government approvals,
which are not expected to be withheld, with the execution of the
SPA and the final closing date for the sale of these assets is now
expected in the second half of January 2024.
Proceeds from the sale of the West Gharib assets are expected to
be approximately $6.9 million and will be paid in US dollars. Of
the total West Gharib sale proceeds, approximately $3.8 million
will be paid immediately. The remaining $3.1 million, which is
subject to certain post close events, is expected to be paid during
Q1 of 2024.
In parallel, the Company is finalising the SPA for the
divestment of its remaining Egyptian asset, South Disouq, with
terms largely agreed. This sale of this SDX-operated asset is also
subject to government and joint venture partner approvals.
Corporate update and replacement of bank guarantee
The Company continues to work on delivering on its recently
announced new strategy. The proceeds from the sale of the Company's
Egyptian assets and of payments in Morocco will be used to develop
its existing assets in Morocco and pay creditors.
Additionally, the Company continues to evaluate areas to improve
operational and commercial efficiencies and to reduce costs where
possible with the aim of delivering long-term sustainable returns
for shareholders. This includes prudent balance sheet optimisation
and, to that end, the Company has recently replaced a $1.0 million
cash-backed bank guarantee with a parent company guarantee
("PCG").
It is expected that this change in guarantee structure will
enable SDX to access $1.0 million of cash by the end of February
2024.
Both the previous cash-backed bank guarantee and the new PCG
cover SDX's Lalla Mimouna Nord concession obligations to ONHYM.
For further information:
SDX Energy Plc
Daniel Gould, Chief Executive Officer
William McAvock, Chief Financial
Officer
Tel: +44 (0) 20 3219 5640
Shore Capital (Nominated Adviser and Broker)
Toby Gibbs/Iain Sexton
Tel: +44 (0) 20 7408 4090
InHouseIR (Investor and Media Relations)
Sarah Dees/Oliver Clark
Email: sdx@inhouseir.com
Tel: +44 (0) 78 8165 0813 / +44 (0) 20 3239 1669
About SDX
For further information, please see the Company's website at
www.sdxenergygroup.com or the Company's filed documents at
www.sedar.com .
Forward-looking information
Certain statements contained in this press release may
constitute "forward-looking information" as such term is used in
applicable Canadian securities laws. Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future
events or are not statements of historical fact should be viewed as
forward-looking information. In particular, statements regarding
the sales of assets and future gas production at KSR-21 should be
regarded as forward-looking information.
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January 09, 2024 02:00 ET (07:00 GMT)
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