SDX Energy secures over $3 million in financing to accelerate gas production in Morocco

SDX Energy secures over  million in financing to accelerate gas production in Morocco

UK-based SDX Energy announced on Thursday that it has secured $3.25 million in financing to develop its gas production in Morocco, enabling it to expand the scope of its activities in the Kingdom.

The oil and gas company said it had secured a syndicated convertible loan agreement with Aleph Finance Ltd for up to $3.25 million, of which an initial $2 million has been released and will be used immediately to reduce debt to the European Bank for Reconstruction and Development (EBRD).

It will also be used as a means of payment for essential service providers in order to accelerate the drilling campaign in Morocco, and for general corporate purposes, says the same source.

The convertible loan will also enable the company to advance its activities towards an energy transition strategy, while continuing the process of selling its Egyptian assets in order to create shareholder value.

It should be noted that the syndicated financing is unsecured, convertible at any time at the discretion of the individual lenders, and repayable 364 days after the first disbursement of the Convertible Loan.

Our vision for SDX is to become the leading energy supplier in Morocco, offering combined gas and renewable energy solutions to our existing and growing customer base”, said Daniel Gould, Managing Director of the British company.

“SDX is ideally placed to leverage its long-standing presence and infrastructure in Morocco to realize this vision. To achieve this, the company will gain access to a broader financial market for renewable energy projects, which can be financed on a stand-alone basis”, he added.

Last month, SDX renegotiated a gas sales contract in Morocco with the Office national des hydrocarbures et des mines (ONHYM), enabling it to expand its gas exploration and production activities in the Kingdom. To this end, authorization for the start of a summer drilling campaign has already been granted.

In addition, the company considers that Morocco has “one of the best fiscal regimes in the sector, and that the gas market is largely underserved by domestic production”. In addition, the new agreement, which came into force on May 1, guarantees a higher gas price for SDX Energy’s production activities in Morocco.


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