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Canada-listed and Egypt-focused SDX on 27 January completed the $30mn acquisition of rival Dublin-listed Circle Oil’s Egyptian and Moroccan assets after raising $40mn through a share issue.
While maintaining its Egypt focus, the deal sees SDX expand to Morocco, with the firm looking to “build a mid-tier E&P focused on North Africa,” CEO Paul Welch says.
“The deal is an excellent strategic fit… in line with our strategy of seeking high margin, low cost growth opportunities,” he says.
The deal will see SDX increase its stake in the 6,500 b/d North West Gemsa concession in the Eastern Desert from 10% to 50% and take a 75% working interest in Morocco’s onshore 6mn cfd Sebou permit. Overall it will triple its net output to 4,700 boe/d. (CONTINUED - 438 WORDS)