SDX Sheds Non-Core Egyptian Licence

London-listed SDX Energy has sold its 50% stake in the North West Gemsa licence in the Eastern Desert of Egypt, it said on July 14, describing the asset as non-core.

The buyer is private Egyptian firm Gulf Energy, which paid $3mn for SDX's interest, of which $1.4mn will be used to cover SDX's remaining liabilities at the licence.

"Whilst we have presented our interest in the licence as non-core for some time, owing to its reducing production and marginal netbacks, it is a welcome outcome to be exiting the licence with a useful cash consideration and also avoiding the upcoming associated budgeted capex of approximately $2.0mn for the year," SDX CEO Mark Reid said. "This deal demonstrates our continued focus on portfolio and capital management, and we look forward to recycling the cash into projects that will further enhance and grow our business in the future."

SDX's main focus in Egypt is the South Disouq field, which it brought on stream in November. It also produces gas in Morocco.