SDX Energy entered into non-binding heads of terms (HoT) with Circle Oil Company for the attainment of Circle Oil’s assets in Egypt and Morocco. The HoT has a 30 day exclusivity period, according to a statement published on the company’s website.
Circle Oil’s AIM quoted shares were suspended in June amid financial turmoil and its investors were warned a number of times through the second half of 2016 that there would be ‘little or no value left’ for equity holders, reported Proactive Investors.
The attainment of the assets come as a result of the completion of due diligence, documentation, compliance with all regulatory requirements and conclusion of an equity fundraising. However, it is not certain that the acquisition fundraising will proceed.
SDX’s CEO, Paul Welch, stated: “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.”
SDX Energy will make further announcements on the subject when appropriate.