Oil and gas exploration and production company SDX Energy Inc has raised approximately $11 million through a private placement, which will be used to fund its activities in Egypt.
“The proceeds will mainly be used on workover and waterflood programs at Meseda and on South Disouq’s 3D seismic program,” said Stephane Foucaud, an analyst at FirstEnergy, in a brief research note sent to Rigzone.
“The workover and waterflood programs are expected to double both production and reserves at Meseda, offering a low risk way of achieving very material upside. The political outlook in Egypt looks to be improving for SDX Energy given that the government has started paying down its receivables,” Foucaud added.
“The new funds raised will enable us to significantly increase production in Meseda, our resilient, high-margin producing asset, and also complete the work program on South Disouq, our high impact exploration opportunity in Egypt,” said SDX CEO Paul Welch in a company statement released on SDX’s website.
“We believe that we are uniquely placed to thrive in this low oil price environment and look forward to the next chapter in our story with confidence.”
On Friday, SDX revealed that it had started trading on the AIM market of the London Stock Exchange and announced that significant oil bearing reservoir sections were found in the recently completed Al Amir SE 24 development well in North West Gemsa.
SDX Energy currently holds 10 percent working interest in North West Gemsa.