SDX Energy PLC on Friday said it has executed a binding sale and purchase agreement for the disposal of its West Gharib interests in Egypt.

The London-based energy company with exploration, development and production assets in Egypt and Morocco said that the total amount of sale proceeds to be received from the buyers, New Horizons LLC and NPC Petroleum Services Ltd, is estimated at $6.6 million.

SDX said that West Gharib assets subject to the SPA comprise 50% of the issued share capital of Brentford Oil Tools LLC, a 50% interest in the exploration and production sharing agreement relating to sub-area West Gharib Blocks G and H and a 50% interest in the joint operating agreement relating to the West Gharib blocks.

Under the deal, SDX will receive around $3.5 million in cash, $900,000 million, payable within five business days of the deposit by SDX of EGP30 million, or $600,000 into an escrow account; and around $2.2 million payable within five business days of the deposit by SDX of a further EGP70 million into an escrow account.

SDX said that it expects to deposit the EGP30 million into escrow immediately using existing EGP cash.

Chief Executive Officer Daniel Gould said: ‘The sale of our West Gharib assets represents a milestone in the execution of our new growth strategy in Morocco. SDX will continue to deliver shareholder value and growth - re-energising and scaling the Company’s Moroccan upstream business. We will also continue to carry out due diligence for SDX’s medium-term expansion into the vertical adjacencies of gas transportation, gas-to-power, and renewable energy generation.’

Shares in SDX were down 2.8% at 3.50 pence each in London on Friday morning.

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