SDX Energy Regulatory News (SDX)

01 March 2023

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

OPERATIONAL AND CORPORATE UPDATE

 SDX Energy Plc (AIM: SDX) provides the following operational and corporate update:

Egypt - South Disouq

· Average gross production of 38.5 MMscfe/d (2,720 boe/d net to SDX) for full year 2022.

· The SD-5X well, drilled in Q2 2022, is on production and is exceeding the immediate post-drill volume expectations. It is expected in place volumes will be increased for this well. 

· Evaluation of the MA-1X well, drilled in Q2-Q3 2022, has been completed and SDX is moving forward on applying for a development lease for the Mohsen discovery. Updates on the progress of the application will be communicated to the market in due course.

· In 2023, it is anticipated that workover operations will be performed on SD-3X and SD-4X wells, recompleting the wells to shallower reservoirs to maximise recovery, and on IY-2 to restart production from the existing reservoir.

Egypt - West Gharib

· Average gross production of 2,033 boe/d (389 boe/d net to SDX) for full year 2022.

· Since October 2022, the development infill drilling campaign has continued with the FDLN-2 and Rabul-9 having been drilled, completed and brought on-line. This brings the total number of wells drilled in the current campaign to eleven.

· Operations at the Rabul SE-1 exploration well are currently ongoing and the results of this well will be communicated to the market in due course.

· Workover operations on the existing well-stock to maximise recovery from the fields continues.

· The operator is evaluating options to increase recovery and plans to bring water injection on the Rabul field.

Morocco

· Morocco gross production averaged 4.9 MMscf/d for 2022.

· The SAK-1 discovery well, drilled in Q3 2022, was connected to the network and a long term well test via production is being carried out.

· The KSR-20 discovery well, also drilled in Q3 2022, was tied-in to the infrastructure and is currently on production.

· Development activities are ongoing with the testing and tying-in of the 2019 BMK-1 discovery and the connection of our infrastructure to the DOB region.

Corporate Update

· Crowe LLP ("Crowe") has been engaged as auditor to the Company. The appointment of Crowe will be subject to approval by shareholders at the next Annual General Meeting of the Company.

· 2022 Year-end results are expected to be published near the end of April 2023.

· SDX focussed on delivering new vision focused on operational and technical excellence, disciplined growth, profitability, and cash flow generation through organic and inorganic opportunities.

· Daan Hanssen, the Interim CFO, has tendered his resignation in order to pursue other interests and will be leaving the Company at the end of May 2023.

Jay Bhattacherjee, Executive Chairman of SDX, commented:

"Since my appointment to SDX, we have made solid operational progress, particularly in Egypt despite the current volatile currency situation in country. We are pushing forward to create a sustainable and repeatable strategy to be a leading player in the energy sector and I am confident that through a disciplined approach, we will have the opportunities to deliver future growth as we implement changes to the business for the benefit of our shareholders.

"The Board would like to thank Daan for his support and dedication and we wish him all the best in his future endeavours."

Standard

Estimates of reserves and resources have been prepared in accordance with the June 2018 Society of Petroleum Engineers ("SPE") Petroleum Resources Management System ("PRMS") as the standard for classification and reporting with an effective date of 31 December 2021 and in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") of the Canadian Securities Administrators.

Competent Persons Statement

In accordance with the guidelines of the AIM Market of the London Stock Exchange, the technical information contained in the announcement has been reviewed and approved by Dr Rob Cook, VP Subsurface of SDX. Dr. Cook has 30 years of oil and gas industry experience and is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies. Dr. Cook holds a BSc in Geochemistry and a PhD in Sedimentology from the University of Reading, UK. He is a Chartered Geologist with the Geological Society of London (Geol Soc) and a Certified Professional Geologist (CPG-11983) with the American Institute of Professional Geologists (AIPG).

For further information:

Glossary

About SDX

For further information, please see the Company's website at www.sdxenergygroup.com or the Company's filed documents at www.sedar.com. 

Forward-looking information

Certain statements contained in this press release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical fact should be viewed as forward-looking information. In particular, statements regarding future drilling developments and results in the Company's Moroccan concessions, and the time in which the Company intends to update the market on its future results should be regarded as forward-looking information.

The forward-looking information contained in this document is based on certain assumptions, and although management considers these assumptions to be reasonable based on information currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capital efficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out planned activities, and the availability and cost of labour and services.

All timing given in this announcement, unless stated otherwise, is indicative, and while the Company endeavours to provide accurate timing to the market, it cautions that, due to the nature of its operations and reliance on third parties, this is subject to change, often at little or no notice. If there is a delay or change to any of the timings indicated in this announcement, the Company shall update the market without delay.

Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, political, social, and other risks inherent in daily operations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition; permitting risks; the ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to refer to the Principal Risks & Uncertainties section of SDX's Annual Report for the year ended 31 December 2021, which can be found on SDX's SEDAR profile at www.sedar.com, for a description of additional risks and uncertainties associated with SDX's business.

The forward-looking information contained in this press release is as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the included forward‐looking information, except as required by applicable law. The forward‐looking information contained herein is expressly qualified by this cautionary statement.