SDX secures $2mn prepayment for gas deliveries in Morocco
SDX Energy, an oil and gas exploration and production company, has entered into a non-binding heads of terms (HoT) with auto parts manufacturer DMA, its largest offtaker, to prepay for gas deliveries in Morocco, it announced on September 13.
The initial terms of the agreement envisage a drawdown of about $2mn by the end of September. These funds are planned to be used towards the drilling costs of the KSR-21 well.
A further HoT for a larger prepayment amount is currently under negotiation and is expected to be agreed and funds drawn by early 2024. SDX plans to direct this second prepayment towards funding a further multi-well back-to-back drilling programme.
SDX said that this type of back-to-back drilling, which allows development of gas behind pipe (booked reserves), further increases operational efficiency, reduces costs and ensures that immediate and future demand can be met.