SDX Divests its 50% Stake in the NW Gemsa Concession in Egypt
Privately-held Egyptian oil & gas company Gulf Energy has signed an agreement with AIM-listed independent SDX Energy Plc to acquire its 50% interest in the North West Gemsa Concession in Egypt’s Eastern Desert.
The transaction consideration is comprised of US$3.0 million in cash, of which SDX has allocated US$1.4 million towards discharging its remaining liabilities on the licence.
SDX first acquired a 10% interest in the NW Gemsa Concession in late 2009, and an additional 40% interest in May 2016. North Petroleum International Company SA, a subsidiary of Chinese state-owned China ZhenHua Oil Company Ltd., currently holds the remaining 50% operated interest in the concession.
NW Gemsa covers an area of 83 sq. km located approximately 300 km south-east of Cairo, and contains three main oil fields — Al Amir SE, Al Ola, and Geyad. Gross production from the licence averaged 3,076 barrels of oil equivalent per day (boe/d) during Q1-2020.
SDX also currently holds a 55% operated interest in the South Disouq gas field in Egypt’s Nile Delta, a 50% non-operated interest in the West Gharib concession in the Eastern Desert, and a 12.75% non-operated interest in the South Ramadan concession, located offshore Gulf of Suez. In addition, the company also holds a 75% working interest in five development production concessions in the Gharb basin in Morocco. The disposal is part of an ongoing effort by SDX to strengthen its balance sheet.
“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,” said Mark Reid, CEO of SDX.