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SDX Energys gas prepayment agreement rolled over with CITIC Dicastal subsidiary, DIKA MOROCCO AFRICA (DMA), for a further US$2.1mn 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 has been agreed with execution and closing is expected later in January, subject only to the completion of administrative steps. The Company will be implementing new strategy as well, including detailed cost review and balance sheet optimisation by swapping US$1mn of cash-backed bank guarantee with a parent company guarantee.


The Company has reached agreement for a second three-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 US$2.1mn.

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 US$1 trillion in assets.

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.


SDX has confirmed its agreement 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.

Proceeds from the sale of the West Gharib assets are expected to be approximately US$6.9mn and will be paid in US dollars. Of the total West Gharib sale proceeds, approximately US$3.8mn will be paid immediately. The remaining US$3.1mn, 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 

The Company continues to work on delivering on its recently announced new strategy. The proceeds from the sale of its 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 US$1.0mn cash-backed bank guarantee with a parent company guarantee (PCG).

It is expected that this change in guarantee structure will enable SDX to access US$1.0mn of cash by the end of February.

Both the previous cash-backed bank guarantee and the new PCG cover SDX's Lalla Mimouna Nord concession obligations to ONHYM.