5th Oct 2023 09:56
(Alliance News) - SDX Energy PLC on Thursday said it received around USD1.9 million from Dika Morocco Africa as part of a gas prepayment heads of terms announced in September.
The London-based energy company, which currently has a portfolio of exploration, development and production assets in Egypt and Morocco said the funds will be primarily used to pay the cost of drilling the KSR-21 well in Morocco, SDX Energy said.
Shares in SDX Energy were up 17% to 4.38 pence each in London on Thursday morning.
SDX Energy said the pre-payment showed evidence of a "deepening partnership" between SDX Energy and Citic Dicastal.
Dika Morocco Africa is a 100%-owned subsidiary of Citic Dicastal, which in turn is a subsidiary of Citic Group, a Chinese holding company with a corporate portfolio approaching USD1 trillion.
SDX Energy noted Citic Dicastal as its largest offtaker with an "increasing and immediate" demand for SDX Energy's gas.
On Thursday last week, SDX Energy said the SR-21 well reached a total vertical depth of 1,955 metres, with drilling data confirming the presence of gas-charged sands in the targeted reservoir section.
Earlier in September, when the prepayment heads of terms was announced, SDX Energy said a further heads of terms for a larger prepayment amount was under negotiation with Dika Morocco Africa. It said it expected this to be agreed by early 2024, with funds drawn at that point.
By Greg Rosenvinge, Alliance News reporter
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