Paul Welch, chief executive of Sea Dragon Energy (CVE:SDX) explains the rationale behind the company’s merger with privately owned Madison PetroGas.
Last month the firm revealed the new company, which will be renamed SDX Energy, will have production in the order of 1,565 boepd and around 5.1mln barrels of proved and probable (2P) reserves in Egypt.
“We think the deal combines the best of both companies,” says Welch. “It allows downside protection with these low oil prices with the exposure to upside potential through exploration opportunities- it’s a fantastic combination.
As a combined business SDX Energy will be funded through 2016, with US$16.5mln of working capital.
