SDX Energy announces US$11 million private placement and intention to apply for admission to trading on the AIM market
SDX Energy, an oil & gas exploration and production company with assets in Egypt & Cameroon, has announced that the Company has effected a private placement fundraising for a total of approx. US$11 million.
A total of 42,201,835 new common shares of no par value in the capital of the Company have been conditionally placed at an issue price of 18 pence (C$0.33) per Placement Share with new and existing institutional investors and directors and senior management. The proceeds of the Private Placement are to be principally applied toward a work programme in Meseda, Egypt which aims to double current production, and the completion of a 3D seismic programme in South Disouq, Egypt.
In conjunction with the Private Placement and in support of the significant new investment from European investors, the Company today announces that it is seeking to admit its Common Shares to trading on the AIM Market operated by London Stock Exchange plc (AIM) in addition to its existing listing on the TSXVenture Exchange (TSX-V). The Company will shortly be publishing an AIM admission document in respect of the admission to trading on AIM and expects its Common Shares to commence trading on AIM on or around 20 May 2016. The Private Placement is conditional upon Admission becoming effective.
Commenting on today’s announcement, CEO Paul Welch said:
‘SDX Energy is a resilient production growth story coupled with exploration upside potential. Our high margin production from our onshore assets in Egypt means we can generate positive free cash flow down to US$15/bbl Brent and this sets us apart from many of our peers. The new funds raised will enable us to execute a near-term work programme on our Meseda asset which has the potential to double production. The funds will also go towards a 3D seismic programme on South Disouq, our high impact exploration license onshore Nile Delta, where we will be fully carried on a well later this year. We are grateful to the existing and new shareholders who have supported us in this process and look forward to completing our admission to AIM later this month.’
(SDX Energy Press Release)