SDX Energy to acquire Circle Oil’s Egyptian and Moroccan businesses

UK-based company SDX Energy has entered a non-binding heads of terms (HoT) to acquire Circle Oil’s Egyptian and Moroccan businesses.

The HoT carries a 30-day exclusivity period.

The plan to acquire these businesses is part of SDX Energy’s strategy to expand its asset base in the North Africa region.

SDX Energy CEO Paul Welch 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.”

The acquisition is subject to the completion of due diligence, documentation and the satisfaction of all regulatory requirements and conclusion of an equity fund raising.

SDX Energy also noted that there is no guarantee that the acquisition or equity fundraising will proceed.

The company also informed that it is entering into the drilling phase of the work programme at South Disouq scheduled early 2017.

The well programme at North West Gemsa and the redevelopment of Meseda are also underway.

Headquartered in London, SDX Energy is an international, Egypt-focused oil and gas company.

SDX owns interest in two production concessions within Egypt's Eastern Desert, namely North West Gemsa and West Gharib (Meseda).

It also owns South Ramadan, a development asset in the Gulf of Suez, and South Disouq, an exploration asset at Nile Delta.