Paul Welch, president and chief executive of SDX Energy (CVE:SDX), says this week’s oversubscribed placing had plenty of institutional support and bodes well for the company’s AIM listing on May 20th 2016.
By broadening the investor base and getting the message out about the company’s work programme in Egypt and aspirations in North Africa, Welch is hopeful SDX Energy’s market capitalisation will match its current NAV which is over US$100 million. “I think we’re at the low ebb of the cycle and this is the time when you need to make investments. You need to put money into the ground because that’s where it’s going to grow and so that’s what we’re doing.”
The US$11mln raised will fund the company’s programme in Egypt which Welch says “will allow us to essentially double our production and triple our reserves.”