London-listed player SDX Energy is to buy a portfolio of oil and gas production and exploration assets in Egypt and Morocco, currently held by Irish junior Circle Oil.

Under the $30 million deal, SDX will acquire a 40% interest in the NW Gemsa concession in Egypt, in which it already holds a 10% interest, and a 75% interest in both the Sebou and Lalla Mimouna concessions in Morocco.

Earlier this month, SDX was granted a 30-day exclusivity period with cash-strapped Circle to finalise details of the sale.

On completion Egypt-focused SDX expects to see a considerable boost in production.

The company said it anticipates that its total net working interest production will increase by over 247% to approximately 4705 barrels of oil equivalent per day, and its net working interest of proven and probable reserves will grow by 64% to 12.03 million barrel of oil equivalent.

The sale is to be funded through a conditional placing of new SDX common shares. The fundraising, completed on Wednesday, raised SDX $40 million.

Cash-strapped Circle saw its shares in London’s AIM were suspended in late June and cancelled at the end of December. Last year, the debt-laden company launched a strategic review looking to sell assets or the entire company. The sale represents approximately 39 cents in the dollar on Circle’s total $77.5 million debt.

SDX’s shares were up 7.4% on Wednesday morning in London.

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SDX Energy to buy Circle’s Egypt, Morocco assets