SDX Energy signs heads of terms to acquire Circle Oil's Egyptian and Moroccan businesses
SDX Energy said Wednesday it notes the recent media speculation concerning a potential acquisition and material equity fundraising.
In line with its stated strategy of seeking value accretive opportunities to expand the asset base in the North Africa region, SDX said it is pleased to confirm that it has entered into non-binding heads of terms (‘HoT’) with Circle Oil for the acquisition of Circle Oil’s Egyptian and Moroccan businesses. The HoT has a 30 day exclusivity period.
The Acquisition is subject, inter alia, to the completion of due diligence, documentation, compliance with all regulatory requirements and conclusion of an equity fundraising. There can be no guarantee that the Acquisition or equity fundraising will proceed.
As previously announced, SDX is entering an exciting period for the Company as it moves into the drilling phase of the work programme at South Disouq in early 2017. In addition, the well workover program at North West Gemsa continues, as does the redevelopment, waterflood program and facility capacity upgrade at Meseda.
Further announcements will be made in due course as and when appropriate.
Commenting, Paul Welch, CEO, said:
‘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 Press Release)