SDX Energy Regulatory News (SDX)

14 November 2016

SDX ENERGY INC

("SDX" or the "Company")

OPERATIONS UPDATE

SDX Energy Inc. (TSXV, AIM: SDX), the North Africa focused oil and gas company, is pleased to provide an operational update on its South Disouq and Meseda concessions in Egypt.

South Disouq

As previously announced on 10 October 2016, SDX's initial assessment of the 3D seismic data at South Disouq was positive and identified potential for both oil and gas bearing prospects. Further interpretation of the data has now indicated several Abu Madi and Kafr El Sheikh prospects displaying strong Class III amplitude versus offset (AVO) responses. Testing of similar responses in offset areas has resulted in numerous discoveries at these stratigraphic levels. These responses have allowed SDX to high grade several prospects for drilling in the near term. These positive AVO responses further de-risk the prospectivity in the area, allowing SDX and its partners to achieve the intended goal of the 3D seismic acquisition program.

SDX, who operate with a 55% equity interest on the concession, and its partner, have agreed on the target and location for drilling the carried exploration well, identified during the interpretation of data. The permitting process has commenced and a team has been engaged to provide technical assistance on the well, with drilling set to commence by early Q1 2017.

Subsequent to the announcement on 10 October 2016, the Company can confirm that it has received enquiries from a number of operators regarding farming in to the licence. Although the Company is fully carried on its remaining obligations in the license and is unlikely to farm down any additional equity, it has agreed to let selected companies submit proposals to acquire an interest in the concession. These discussions are ongoing and SDX will update the market as appropriate.

Meseda

SDX has completed the final design work on the Electrical Submersible Pump ("ESP") program, which it undertook after conclusion of its field review in May 2016. The Company is now finalising its technical review of the Meseda facility after which it will procure equipment necessary to double the treating capacity of the central production facility ("CPF"), enabling it to significantly raise net production from the concession.

Paul Welch, CEO of SDX Energy, commented:

"Today's announcement demonstrates solid operational progress and momentum for SDX. The update on South Disouq marks an important step for the Company, as we move out of the analysis phase of our work programme and into drilling phase. At Meseda, we are excited to have the majority of the technical work completed and look forward to moving into the implementation phase in the near term in order to maximise the field's full potential."

About SDX

SDX is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has an interest in two production concessions: North West Gemsa and West Gharib (Meseda) both located in the Eastern Desert. SDX's portfolio also consists of South Ramadan, a development asset in the Gulf of Suez and South Disouq, an exploration asset in the Nile Delta. For further information, please see the website of the Company at www.sdxenergy.com or the Company's filed documents at www.sedar.com.

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