Egyptian oil explorer SDX Energy to float on AIM

SDX Energy, an oil explorer and producer with assets in Egypt, is planning to float its shares on London's AIM market later in May after agreeing an US$11m fundraising.

SDX, which will keep its existing listing on Toronto's TSX, said it will use the proceeds of the placing to continue work to double production from its Meseda mine in Egypt, and complete a 3D seismic programme in South Disouq elsewhere in the north African country.

Chief executive Paul Welch said SDX offered investors "a resilient production growth story coupled with exploration upside potential".

"Our high margin production from our onshore assets in Egypt means we can generate positive free cash flow down to US$15/bbl Brent and this sets us apart from many of our peers."

South Disouq is said to be a "high impact" exploration license onshore Nile Delta, where SDX plans to carry out the seismic work on a well later this year.

SDX, which reported net production of 1,519 barrels of oil equivalent per day (boepd) in 2015, has appointed Cantor Fitzgerald Europe its nominated adviser and joint broker, along with FirstEnergy Capital as joint broker.