SDX Energy Plc (LON:SDX) revealed on Thursday it is withdrawing from the Bakassi West project, offshore Cameroon.
The partners in the venture had asked the Cameroon authorities for an extension to the current exploration phase, to allow further analysis following the Manatee-1 well but this was denied.
Sam Wahab, an analyst at Cantor Fitzgerald, tells Proactive Investors he believes the company has made the right choice to walk away.
“I think the market would have been encouraged by this; it shows that the company is demonstrating a strong approach to capital discipline.
“They don’t see spending any more money on their non-core assets, favouring instead to spend it more wisely, in my opinion, on their high production growth story in Egypt,” he says.