Egypt-focused oil and gas firm SDX Energy finalized the deal to buy UK’s Circle Oils assets in Egypt and Morroco for $30m on the 27th of January 2017. Prior to this deal SDX had a $40m fundraising exercise over the week, reported Natural Gas World.
Owning Circle Oil’s assets will boost working production by 247% to reach about 4,705b/d of oil equivalent and its net production reserves will increase by 64% to become 12.03mb of oil equivalent, reported Digital Look Web Financial Group.
The deal will further bring SDX a 40% interest in Egypt’s NW Gemsa concession, adding net total reserves of 3.8mb of oil equivalent; and in Morocco a 75% interest in the Sebou and Lalla Mimouna gas concessions, which will add net total reserves of 0.9mb of oil equivalent as Circle Oil owned a 75% interest in Sebou.
SDX CEO, Paul Welch, stated that the fundraising and acquisition would boost the company’s production and capital as SDX seeks to build a mid-tier exploration and production (E&P) company focused on North Africa. He added: “We remain excited about our upcoming drilling campaign in [Egypt’s] South Disouq and look forward to updating our new and existing stakeholders on the company’s progress over the coming months.”