SDX Energy Regulatory News (SDX)

27 July 2023

SDX ENERGY PLC ("SDX" or the "Company")

FUNDING TO ACCELERATE CORPORATE DEVELOPMENT AND MOROCCAN GAS PRODUCTION

· Drilling campaign underway to increase Moroccan production on higher gas pricing

· Complementary energy transition opportunities being explored with funding partners that leverage existing Moroccan footprint

· Company continues to evaluate the proposals received for its Egyptian assets

SDX is pleased to announce that, following the securing of higher gas prices, the Company has secured financing to expand its Moroccan gas production. The syndicated convertible loan agreement with Aleph Finance Ltd for up to $3.25 million (the "Convertible Loan") of which an initial amount of $2 million has been drawn and will be immediately used to reduce outstanding debt to the European Bank for Reconstruction and Development ("EBRD"), pay critical service providers to accelerate the Moroccan drilling campaign and for general corporate purposes. The Convertible Loan enables the Company to move the business forward, towards an energy transition strategy, as it continues with the process to sell its Egyptian assets with a view to deliver value to shareholders.

The syndicated Convertible Loan is unsecured, convertible at any time at the option of the individual lenders and repayable 364 days after the initial drawdown of the Convertible Loan is made. The conversion price is approximately 4.5 pence per Ordinary Share (or, if lower, the lowest issue price for any Ordinary Shares issued during the life of the Convertible Loan). If conversion occurs within ten business days of maturity, the conversion price is approximately 6.6 pence per Ordinary Share.

Interest of SOFR+15% on the Convertible Loan will be payable on a quarterly basis with an option for payment in kind, upon mutual agreement by the borrower and lenders.

Daniel Gould, the Managing Director, commented:

"Our vision for SDX is to become the leading energy provider in Morocco, delivering combined gas and renewable energy solutions to our existing and growing customer base. SDX is uniquely positioned to leverage its long presence and infrastructure in Morocco to execute this vision. In order to deliver on this vision, the Company will access a wider capital market for the renewable projects, which may be financed on a standalone basis."

**ENDS**

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN. 

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