SDX in Egypt Talks with BP

BP is in talks to sell a "significant package of assets" to AIM and Toronto-listed independent SDX Energy, the latter said September 20.

The small North Africa onshore gas E&P firm confirmed, in response to 'press speculation', that its board was in talks with BP to buy Egyptian assets, and that such an acquisition would constitute a reverse takeover under AIM rules and thus require shareholder approval. "In accordance with AIM Rules, the company's shares have been suspended from trading on AIM with immediate effect and will remain suspended until an AIM admission document has been published, or until the company confirms that the Acquisition is not proceeding," said SDX. Trading on the Toronto exchange would also be halted.

No further details of the assets was given; SDX said a further announcement would be made as and when appropriate.

But it is likely to include BP non-core mature onshore oil or gas interests, so not large BP offshore gas assets such as its 10% equity in the giant Zohr offshore field and 25% in Egypt's IEOC (Nooros gas field). The BP-operated West Nile Delta phase 1 (WND1) and Eni-run Zohr started production last year, while BP-operated Atoll started up in February 2018 and WND 2 is due to follow later this year.

SDX's recent Egyptian gas exploration round ended successfully with the company saying it plans to start South Disouq gas production there in 4Q2018.  It is also recently secured financing to expand production from its Moroccan gas field assets.