REG - SDX Energy PLC - RELATED PARTY TRANSACTION

SDX EnergyAnnouncement

13/09/2022 09:15

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RNS Number : 2563Z  SDX Energy PLC  13 September 2022

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

13 September 2022

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

 

RELATED PARTY TRANSACTION

 

SDX Energy Plc (AIM: SDX), the EMEA-focused energy company, announces that on
9 August 2022, Sea Dragon Energy (Nile) B.V. ("Sea Dragon Nile"), a subsidiary
of SDX that is party to the South Disouq concession, onshore Egypt, paid a
dividend of US$2,700,000 to its shareholders. As Sea Dragon Nile is 67% owned
by a 100% subsidiary of SDX and 33% owned by Energy Flow Global Limited
("EFGL"), a dividend of US$891,000 was paid to EFGL. This is the method by
which EFGL receives its economic entitlement to its share of South Disouq
revenues less costs. The dividend was paid using Sea Dragon's existing cash
resources. SDX's share of the dividend will be used to meet the cash
requirements of Group activities.

 

As EFGL is considered a related party of SDX, the dividend represents a
related party transaction under the AIM Rules. The directors of the Company
having consulted with the Company's nominated adviser, consider that the terms
of the transaction are fair and reasonable insofar as its shareholders are
concerned.

 

About SDX

SDX is an international oil and gas exploration, production, and development
company, headquartered in London, United Kingdom, with a principal focus on
EMEA. In Egypt, SDX has a working interest in two producing assets: a 36.9%
operated interest in the South Disouq, Ibn Yunus and Warda gas fields and a
67.0% operated interest in the Ibn Yunus North gas field in the Nile Delta and
a 50% non-operated interest in the West Gharib concession, which is located
onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX
has a 75% working interest in four development/production concessions, all
situated in the Gharb Basin. The producing assets in Morocco are characterised
by attractive gas prices and exceptionally low operating costs. SDX has a
strong weighting of fixed price gas assets in its portfolio with low operating
costs and attractive margins throughout, providing resilience in a low
commodity price environment. SDX's portfolio also includes high impact
exploration opportunities in both Egypt and Morocco.

 

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) .

 

 

For further information:

 

 SDX Energy Plc

 Mark Reid

 Chief Executive Officer

 Nick Box

 Chief Financial Officer

 Tel: +44 203 219 5640

 Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)

 Callum Stewart

 Jason Grossman

 Ashton Clanfield

 Tel: +44 (0) 20 7710 7600

 Camarco (PR)

 Billy Clegg/Owen Roberts/Violet Wilson

 Tel: +44 (0) 203 757 4980

 

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
the Company's future growth plans and strategy should be regarded as
forward-looking information.

 

The forward-looking information contained in this document is based on certain
assumptions, and although management considers these assumptions to be
reasonable based on information currently available to them, undue reliance
should not be placed on the forward-looking information because SDX can give
no assurances that they may prove to be correct. This includes, but is not
limited to, assumptions related to, among other things, commodity prices and
interest and foreign exchange rates; planned synergies, capital efficiencies
and cost-savings; applicable tax laws; future production rates; receipt of
necessary permits; the sufficiency of budgeted capital expenditures in
carrying out planned activities, and the availability and cost of labour and
services.

 

All timing given in this announcement, unless stated otherwise, is indicative,
and while the Company endeavours to provide accurate timing to the market, it
cautions that, due to the nature of its operations and reliance on third
parties, this is subject to change, often at little or no notice. If there is
a delay or change to any of the timings indicated in this announcement, the
Company shall update the market without delay.

 

Forward-looking information is subject to certain risks and uncertainties
(both general and specific) that could cause actual events or outcomes to
differ materially from those anticipated or implied by such forward-looking
statements. Such risks and other factors include, but are not limited to,
political, social, and other risks inherent in daily operations for the
Company, risks associated with the industries in which the Company operates,
such as: operational risks; delays or changes in plans with respect to growth
projects or capital expenditures; costs and expenses; health, safety and
environmental risks; commodity price, interest rate and exchange rate
fluctuations; environmental risks; competition; permitting risks; the ability
to access sufficient capital from internal and external sources; and changes
in legislation, including but not limited to tax laws and environmental
regulations. Readers are cautioned that the foregoing list of risk factors is
not exhaustive and are advised to refer to the Principal Risks &
Uncertainties section of SDX's Annual Report for the year ended 31 December
2021, which can be found on SDX's SEDAR profile at www.sedar.com
(http://www.sedar.com) , for a description of additional risks and
uncertainties associated with SDX's business.

 

The forward-looking information contained in this press release is as of the
date hereof and SDX does not undertake any obligation to update publicly or to
revise any of the included forward‐looking information, except as required
by applicable law. The forward‐looking information contained herein is
expressly qualified by this cautionary statement.

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