LNG

SDX Energy plc, the UK-based oil and gas exploration and production company, said it had received multiple offers for its Egyptian natural gas assets and was considering them.

SDX Energy, the UK-based oil and gas exploration, production, and development company with working interests in natural gas fields in Egypt and Morocco after a string of discoveries in 2017 and 2018, is facing a takeover battle and may have to bring more cash to the table for existing shareholders.

UK Stock Exchange-listed SDX Energy has been informed by London-headquartered Aleph Commodities Limited that it now commands over 25 percent of the share capital of the company and intends to block an all-share takeover proposed by Canadian company Tenaz Energy Corp. of Calgary, Alberta.

“Through public disclosures and communication with SDX, we have been informed that a shareholder intends to vote against the proposed Scheme of Arrangement to amalgamate Tenaz and SDX,” said a Tenaz Energy statement.

SDX's portfolio includes high impact exploration opportunities in both Egypt and Morocco as well as producing assets in Morocco’s Gharb Basin and the Egyptian Nile Delta.

Natural gas assets in Egypt are the focus of possible LNG or pipeline gas exports and in the case of Morocco domestic gas projects.

Tenaz Energy explained that the takeover required, among other things, that 75 percent of the shares voted by SDX shareholders support the combination for it to become effective.

Strategy change

The Canadian company has now said that it reserved the right to elect to implement the transaction by way of a takeover offer in compliance with the UK Takeover Code and through a co-operation agreement with SDX.

“We are evaluating all available options with respect to the transaction and will provide a further update when appropriate,” stated Tenaz Energy.

A statement from Aleph Commodities by way of explanation made several points on behalf of itself and other parties, who together hold 25.65 percent of the shares.

It stated that the group of shareholders led by Aleph Commodities intended to vote against the recommended all-share combination.

“The shareholder meetings relating to the Scheme of Arrangement are due to be held on 29 July 2022,” noted Aleph Commodities.

“Aleph welcomes the opportunity to engage with management and the Board of Directors to explore opportunities to provide financial, commercial and technical support to SDX to ensure the growth of the company and its production base, with minimal dilution,” it stated

SDX Energy has a working interest in two producing assets in Egypt, a 36.9 percent operated interest in the South Disouq and Ibn Yunus gas fields and a 67.0 percent operated interest in the Ibn Yunus North gas field in the Nile Delta.

It additionally holds a 50 percent non-operated interest in the West Gharib concession, which is located onshore in Egypt’s Eastern Desert, adjacent to the Gulf of Suez.

In Morocco, SDX has a 75 percent working interest in four development and production concessions, all situated in the Gharb Basin.

The producing assets in Morocco are characterised by “attractive gas prices and exceptionally low operating” costs.

June 18 (LNG) - SDX Energy Inc., the UK-based exploration company, has made another natural gas discovery in Egypt at its South Disouq concession. The well was drilled to a total depth of 7,806 feet and encountered 89 feet of net conventional natural gas pay. SDX also completed a test programme at its LMS-1 well in the Lalla Mimouna Nord permit in Morocco. Egypt is seeking to end LNG imports amid abundant domestic gas supply while Morocco has one LNG import project in development. “Overall we are very pleased with our recent drilling activity. In Morocco we had seven successful results from our nine well program and in Egypt we have had three successes out of the four wells drilled,” said SDX Chief Executive Paul Welch. “I am looking forward to updating our shareholders on the well test results and progress we are making on our development activity,” he added.

Jan 24 (LNGJ) - SDX Energy Inc., the oil and gas company focused on North Africa and whose shares are listed in London and Toronto, said it made another natural gas discovery at its Onz-7 development well on the Sebou permit in Morocco. The latest Moroccan gas find is relatively small in scale and the country is still planning to import LNG to supplement its growing energy needs. The Onz-7 well was drilled to a total depth of 1,167 metres with 5 metres of net conventional natural gas pay. “The well came in on prognosis but reservoir quality exceeded initial expectations,” said SDX. The well will now be completed, tested and connected to existing infrastructure. “We are very excited to be able to announce another discovery, the fourth from five wells drilled to date in our nine well Moroccan campaign,” said Paul Welch, Chief Executive of SDX.

SDX Energy Inc., the UK-listed oil and gas company, has made its third successive onshore natural gas discovery in Morocco as the North African country pursues an LNG import project to improve gas availability for industry and power.

Nov 21 (LNGJ) - SDX Energy, the exploration and production company listed in London and Toronto and with recent drilling successes in Morocco, a potential LNG importer, posted third-quarter revenue of $10 million compared with $2.1M in the same three months of 2016. Nine-month revenue was $28.2m versus $7.6M in 2016. “This has been one of the company’s strongest quarters yet,” said SDX Chief Executive Paul Welch. “We announced a successful $10 million fundraise during the period, which allows us to accelerate our drilling programmes in Egypt and Morocco. We have made an excellent start to the Morocco drilling campaign, announcing two discoveries from the first two wells,” added the CEO.

SDX Energy, the UK-listed exploration and production company, has made a second natural gas discovery in Morocco as its operations “build real momentum” in the North African kingdom that is a net importer of energy and is preparing to join the ranks of global LNG importers.

SDX Energy, the UK-listed exploration and production company, said it had made a natural gas discovery in Morocco, the North African kingdom that is a net importer of energy and is preparing to join the ranks of global LNG importers.