SDX Energy has announced that it has commenced a private placement to raise about $11 million to further operations in Meseda, Egypt.

According to the company, for the time being a total of 42,201,835 new common shares of no value in its capital has been placed at an issue price of 18 pence per placement share with new and existing institutional investors, directors and senior management. 

The money gathered from this placement, are to be used mainly to forward a work programme in Meseda, Egypt with the aim of increasing current production as well as the completion of a 3D seismic programme in South Disouq, also in Egypt.

“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,” Paul Welch, CEO of SDX told Energy Egypt.

Anita Fatunji