SDX Energy PLC (AIM:SDX, OTC:SDXEF) shares posted early gains after the oil and gas firm announced a series of strategic manoeuvres, as it maintains operations in Morocco and divests assets in Egypt.
The company, in a statement, said it has successfully extended its gas prepayment agreement with CITIC Dicastal's subsidiary, DIKA MOROCCO AFRICA, for an additional US$2.1 million for the first quarter of 2024.
It is also finalising a long-term gas delivery arrangement with CITIC Dicastal, the company noted.
Operationally, the company added that its new well, KSR-21, completed in the fourth quarter of 2023, is being integrated into the existing infrastructure and is set to start production pending government approvals.
As part of its increasing focus on core operations, the company told investors it has finalised documentation for its sale of its West Gharib assets. The transaction, expected to close later in January 2024, is anticipated to yield approximately US$6.9 million of proceeds subject to government approval.
SDX said it is also undertaking a comprehensive strategy revamp, including a cost review and balance sheet optimisation. And, it has now replaced a US$1 million cash-backed bank guarantee with a parent company guarantee.
This is expected to enhance SDX's liquidity, freeing up US$1 million by the end of February.
In London, SDX shares moved 3% higher in early transactions to trade at 4.03p each, valuing the equity at just over £8 million.