SDX Energy Inc (LON:SDX) (CVE:SDX) is to delist from Toronto’s TSX Venture Exchange and move its corporate residence to the UK from Canada.
The North Africa-focused oiler said its shareholder base has moved increasingly towards the UK since its dual listing on AIM back in May 2016, while it has received “limited institutional support” from the Canadian market.
WATCH: SDX Energy's Paul Welch on operational plans ahead of 'landmark' 2019
The delisting and move of residence are expected to complete in the second quarter and SDX anticipates the changes will result in “meaningful” annual savings and a more tax efficient corporate structure.
“In keeping with SDX's corporate strategy, we are keen to be as cost-efficient as possible and we see delisting from the TSXV as a way to achieve further cost savings for the business,” said president and chief executive Paul Welch.
Busy year ahead
Elsewhere in Monday morning’s update, SDX revealed the operational plans for its various projects for the year ahead.
“In Egypt, a 10 well workover programme is set to commence at North West Gemsa and further drilling opportunities at Meseda means that we now expect to grow gross production from this asset in 2019,” said CEO Welch.
“At South Disouq, completing the Central Processing Facility and achieving first gas from the licence will be a landmark event for SDX.
“We continue to believe that South Disouq contains considerable upside potential and we look forward to updating the market on further operational progress on the licence in due course.”
He added: “We are also excited to start the 12 well drilling campaign in Morocco in the second half of the year, given the significant drilling success we achieved with our drilling programme last year.”
