SDX Energy Inc (LON:SDX, CVE:SDX) told investors that it is due to sign a three-year, US$10mln credit facility with the European Bank for Reconstruction and Development (EBRD) with the funds earmarked for its assets in Morocco.
It will be an initial US$10mln facility, though it will have an ‘accordion’ feature allowing for up to US$20mln of total funds availability.
The growing oil and gas firm described it as being ‘an additional liquidity source’ and said it will help optimise the cost of capital for infrastructure, future drilling and field development.
"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,” said Paul Welch, SDX chief executive.
“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."
A signing is due to take place later today and the funds will be available for drawing in the coming weeks.