(Sharecast News) - Middle East and North Africa-focussed oil and gas company SDX Energy has disposed of its 50% working interest in the North West Gemsa licence, in the Eastern Desert of Egypt, it announced on Tuesday.
The AIM-traded firm said the purchaser, private Egyptian oil and gas company Gulf Energy, has paid $3m (£2.4m) in consideration, of which $1.4m was used to discharge SDX's remaining liabilities on the licence.
It said the net proceeds of $1.6m exceeded its expectations for the sale of the non-core asset.
The disposal was part of the company's ongoing focus on capital discipline and management of its portfolio, while also providing additional cash to further strengthen its balance sheet.
"Whilst we have presented our interest in the licence as non-core for some time, owing to its reducing production and marginal netbacks, it is a welcome outcome to be exiting the licence with a useful cash consideration and also avoiding the upcoming associated budgeted capex of approximately $2m for the year," said chief executive officer Mark Reid.
"This deal demonstrates our continued focus on portfolio and capital management, and we look forward to recycling the cash into projects that will further enhance and grow our business in the future."
At 1415 BST, shares in SDX Energy were up 5.66% at 18.49p.
SDX Energy (SDX)3 May 2024 15:50
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