North Africa focused oil and gas company SDX Energy Inc has confirmed that it is in discussions for the acquisition of a “significant package of assets” in Egypt from BP.
“The acquisition would constitute a reverse take-over under rule 14 of the AIM rules for companies and would be subject to shareholder approval,” SDX Energy said in a company statement.
“In accordance with the AIM rules the company’s shares have been suspended from trading on AIM with immediate effect and will remain suspended until an AIM admission document has been published or until the company confirms that the acquisition is not proceeding,” the statement added.
“Trading in the shares of the company on the TSX venture exchange will also be halted during such time. A further announcement will be made as and when appropriate,” the statement continued.
BP has a “long and successful track record in Egypt stretching back over 55 years,” according to BP’s website, which states that in Egypt, its business is primarily in exploration and production.
“BP has produced almost 40 percent of Egypt’s entire oil production and supported the development of its gas market. Currently, BP produces close to 10 percent of Egypt’s oil, and more than 50 percent of the nation’s gas with our partners,” BP’s website states.
SDX Energy has interests in four concessions in Egypt, according to its website, including South Disouq (55 percent interest), Meseda (50 percent interest), North West Gemsa (50 percent interest) and South Ramadan (12.5 percent interest).