In late afternoon trding, SDX shares were over 8%, or 3.62p or higher at 47.38p.
The injection of capital is earmarked for the acceleration of the group’s exploration and appraisal of the South Disouq asset, where a well last year confirmed a new gas discovery, in addition to the development drilling programmes in Morocco.
Specifically, SDX said it will now be fully funded to take South Disouq to first gas, targeted for the first quarter of 2018, and two additional exploration wells in the South Disouq area for targets amounting to 150bn cubic feet of gas.
In Morocco, it will be able to pay for two additional development wells – with the proposed programme growing to seven development wells and two explorations wells – and it will also fund a potential 3D seismic programme which could unearth new Morocco drill targets for 2019.
These programmes are expected to deliver new cash resources, via the subsequent start-up of gas sales from South Disouq and growth in the Morocco operations.
"We are pleased to have been able to commit this additional investment into drilling programmes in both Egypt and Morocco,” said Paul Welch, SDX chief executive in a statement.
“The proceeds of the fundraising will be deployed into additional wells which have the potential to pay back very rapidly.
“We would like to thank our shareholders for their continued support as we enter a high-impact period in the company's development."
The funding, which sees 17.55mln new shares issued at 43.75p, was arranged by City firms Stifel and Cantor Fitzgerald.
SDX highlighted that the funding included a significant subscription from MEA Energy Investments, which as a result increased its shareholding in the company to 19.1% from 15.6%.
Reaping the Circle rewards
In a note to clients, SPAngel analyst John Meyer said: “There is no doubt that SDX's management team completed a great deal for its shareholders when it acquired Circle's assets for the price they did.
“Make no bones about it, the bid was a competitive one set in the context of the Circle’s then distressed situation.”
He added: “That SDX was able to raise the cash it did, and has gone from strength to strength on what is a higher-grade portfolio than its legacy portfolio, is testament to the deal that was done.
“What is continues to do, however, in the context of the performance since, is raise the question of whether the creditors achieved a fair price for the Circle’s owners, or in that matter, themselves.
“However, businesses aren't charities, the creditors have an obligation to their investors, and it is SDX's shareholders that are reaping the rewards.”
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