REG - SDX Energy PLC - GAS PREPAYMENT AGREEMENT

SDX EnergyAnnouncement

13/09/2023 07:15

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RNS Number : 2337M  SDX Energy PLC  13 September 2023

 

13 September 2023

SDX ENERGY PLC ("SDX" or the "Company")

GAS PREPAYMENT AGREEMENT

 

Highlights

·    Gas Prepayment Heads of Terms ("HoT") agreed with Citic Dicastal
subsidiary, DIKA MOROCCO AFRICA ("DMA"), for Q4 gas supplies

·    Prepayment amount of c. $2million planned to be drawn down by 30
September 2023

·    Additional HoT for a larger prepayment transaction to be agreed and
planned to be drawn down by early 2024

 

The Company is pleased to announce that it has entered into a non-binding HoT
with DMA, its largest offtaker, to prepay for SDX's gas deliveries in Morocco.
The initial terms of the agreement envisage draw down of c. $2 million by the
end of September 2023. These funds are planned to be used towards the drilling
costs of the KSR-21 well.

A further heads of terms for a larger prepayment amount is currently under
negotiation and is expected to be agreed and funds drawn by early 2024. The
Company plans to direct this second prepayment towards funding a further
multi-well back-to-back drilling programme. As mentioned in the Company's
announcement of 4 September 2023, this type of back-to-back drilling, which
allows development of gas behind pipe (booked reserves), further increases
operational efficiency, reduces costs and ensures that immediate and future
demand can be met.

The Company also announces that it has drawn down a further $500k from the
Convertible Loan, as announced on 27 July 2023.

Daniel Gould, the Managing Director, commented:

"These Heads of Terms testify to the deepening of the long-standing
partnership between SDX and DMA, as well as Citic Dicastal more broadly.  SDX
has been supplying gas to DMA in Morocco for over five years and is committed
to continuing to be a sustainable partner for its energy needs. This
partnership is mutually beneficial for SDX, DMA, and supports the growth of
industry in Morocco."

About DMA

·    DMA is a 100% subsidiary of Citic Dicastal - world leader in
automobile part manufacturing and the 50(th) largest auto supplier in the
world.

·    Citic Dicastal is a subsidiary of Citic Group - a Chinese holding
company with a corporate portfolio approaching $1 trillion.

 

 

For further information:

 

 SDX Energy Plc

 Daniel Gould, Managing Director

 William McAvock, Chief Financial Officer

 Tel: +44 (0) 20 3219 5640

 Shore Capital (Nominated Adviser and Broker)

 Toby Gibbs/Iain Sexton

 Tel: +44 (0) 20 7408 4090

 InHouseIR (Investor and Media Relations)

 Sarah Dees/Oliver Clark

 Email: sdx@inhouseir.com (mailto:sdx@inhouseir.com)

 Tel: +44 (0) 78 8165 0813 / +44 (0) 20 3239 1669

 Camarco (PR)

 Billy Clegg/Owen Roberts/Violet Wilson

 Tel: +44 (0) 20 3757 4980

 

About SDX

For further information, please see the Company's website at
www.sdxenergygroup.com (http://www.sdxenergygroup.com/) or the Company's filed
documents at www.sedar.com (http://www.sedar.com/) .

 

Forward-looking information

Certain statements contained in this press release may constitute
"forward-looking information" as such term is used in applicable Canadian
securities laws. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or are not statements of historical fact should
be viewed as forward-looking information. In particular, statements regarding
future drilling developments at KSR-21 should be regarded as forward-looking
information.

 

 

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