SDX Energy receives $1.9m pre-payment from Citic subsidiary

Exploration and production company SDX Energy revealed on Thursday that it has received a payment of roughly $1.9m from a Citic Group subsidiary in relation to a gas pre-payment head of terms agreement.

Earlier in the month, SDX announced it had struck a head of terms agreement with Dika Morocco Africa, a 100%-owned subsidiary of CITIC Dicastal, which is a subsidiary of Citic Group, a Chinese holding company with a corporate portfolio approaching $1.0trn.

The AIM-listed firm said the pre-payment showed evidence of "a deepening partnership" between SDX and CITIC Dicastal, which is the company's largest offtaker and has an "increasing and immediate demand" for SDX's gas.

SDX added that the funds will be used primarily to pay the costs of drilling the KSR-21 well in Morocco.

As of 1415 BST, SDX shares had surged 14.13% to 4.28p.

Reporting by Iain Gilbert at Sharecast.com