SDX Energy Inc., the North Africa focused oil and gas company has announced that through its subsidiary SDX Energy Morocco Limited, has signed a facility agreement with the European Bank for Reconstruction and Development for the provision of a three year $10 million Reserves Based Lending Credit Facility with an ‘Accordion’ feature taking total potential availability up to $20 million
The facility will be available for use in Morocco and will provide the Company with an additional liquidity source and the ability to optimize its cost of capital for the funding of customer connection infrastructure and future drilling and field development costs.
The facility will be available for drawing in the coming weeks after satisfaction of the normal conditions precedent.
Paul Welch, President and CEO of SDX, commented: “We are very pleased to sign this Facility with the EBRD and we look forward to working with them as a long term financing partner in our business. As is widely acknowledged, the EBRD’s due diligence process is extremely stringent and the establishment of this Facility with them is a testament to the quality of SDX’s business, its processes and its environmental and social compliance in our countries of operation.”