SDX renegotiates gas sales agreement in Morocco

SDX Energy announced on Monday that it had renegotiated a gas sales agreement with one of its major customers in Morocco.

The AIM-traded firm said the new agreement, in line with the regional development strategy, would result in SDX receiving a higher gas price for production starting from 1 May.

Morocco remained a key focal point for SDX, the board said, adding that the company was strategically positioned to seize the emerging opportunities in an energy market that was growing increasingly demanding.

With the price increase, SDX said it would be able to invest more significantly in its operations, contributing to the exploration and production of natural gas in Morocco.

"We are delighted that we have been able to renegotiate the gas sales agreement with one of our key customers and would like to thank ONHYM for its continued support, said interim executive chairman Jay Bhattacherjee.

"Morocco remains a core area for us and we endeavour to expand our energy provider footprint in the country."

At 1400 BST, shares in SDX Energy were up 8.16% at 5.3p.

Reporting by Josh White for Sharecast.com.