Continental Focus, International Reach

SDX Signs HoT for Circle’s N. Africa Assets

Sunday, January 15, 2017

SDX Energy has made moves to expand its acreage base in North Africa, signing a Heads of Terms (HoT) that could possibly increase its holdings in Egypt and gain it producing assets in Morocco. The HoT was signed with Circle Oil, one of SDX’s partners on the North West Gemsa concession in Egypt.

The agreement signed is in line with the company’s stated strategy of seeking value accretive opportunities to expand the asset base in the North Africa region.

The HoT, which covers the acquisition of Circle’s businesses in Egypt and Morocco, is non-binding and has an exclusivity period of 30 days.

Commenting, Paul Welch, CEO, said: “We have made clear our firm intentions to create shareholder value by growing SDX into a profitable mid-tier E&P company. Circle’s assets present an attractive opportunity to add material production and reserves at an attractive price.  However, there is no certainty that this deal will be completed. We remain excited about the near term activities from our existing portfolio, including the near term South Disouq exploration well, and look forward to keeping our shareholders appraised of all developments.”


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