SDX Energy PLC (LON:SDX) told investors it has sold a non-core asset in the Eastern Desert of Egypt in a deal worth US$3mln.
The group said it has sold a 50% working interest in the North West Gemsa licence to Gulf Energy, a private Egyptian company.
Some US$1.4mln of the proceeds are being immediately used to discharge the company’s remaining liabilities on the licence.
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The company pointed out that the deal is part of an ongoing focus and commitment to capital discipline and careful portfolio management.
“We are pleased to complete the sale of our interest in the North West Gemsa licence,” Mark Reid, SDX chief executive said in a statement.
“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 US$2mln for the year.
“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.”