Egypt

SDX Receives $3.5 Million in Sale Proceeds from Diverted Egyptian Asserts

Published on : 2024-05-11

London-listed energy SDX Energy disclosed today that it received the initial tranche of proceeds from the West Gharib sales in Egypt, totaling $3.5 million. 

In a statement, SDX announced that they have used the proceeds to complete a full repayment of its secured EBRD reserves-based lending facility, amounting to $2.7 million. 

The development has bolstered SDX’s financial position, providing it with increased flexibility to advance its strategic initiatives and deliver enhanced value to its shareholders, the company explains in the statement. 

Receiving the funds from the West Gharib sale marks a significant milestone for SDX, enabling it to fortify its operations and pursue growth opportunities in Morocco. 

The company announced in September 2023 plans to divest its Egyptian assets and channel the proceeds to bolster operations in Morocco.

With this infusion of capital, the company is poised to expedite the divestiture of its South Disouq assets while expanding its footprint in Morocco. 

In a related development, SDX provided an update on its Convertible Loan Agreement with Aleph Finance Ltd, initially announced in July 2023. 

Under the Original Agreement, SDX had drawn $2.5 million of the $3.25 million Convertible Loan facility. However, the company is yet to utilize the remaining $750,000, following the signing of an amendment that extends the drawdown period.

To address this, SDX has negotiated an amendment to the Original Agreement, extending the drawdown period and facilitating the utilization of the remaining commitment amount. 

The $750,000 will be deployed by the company to settle obligations to service providers engaged in ongoing Moroccan drilling activities and for general corporate purposes.

It’s important to note that the terms of the syndicated Convertible Loan remain unchanged, with it being unsecured and convertible at the discretion of individual lenders. 

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