1 CORPORATE PRESENTATION - SDX Energy Plc€¦ · Maximising value from South Disouq across the exploration & production life cycle. SDX ENERGY ... Salah reflects the aggregate mean

WWW.SDXENERGY.COMSDX ENERGY

1

CORPORATE

PRESENTATIONNovember 2019

Creating a better world for all

our stakeholders


2

SDX overview

• Company overview 3

• Portfolio - Asset overviews 6

• Valuation & share price

performance

17

• Upcoming activity and catalysts 19

• Exco profiles 21

• Board of Directors profiles 22

Appendix

• YTD Financial results 24

• YTD Operating results 25


3SDX ENERGY

COMPANY OVERVIEW• E&P with nine concessions in Egypt and Morocco providing high margin production and high

impact exploration in stable locations with improving macro-economic outlooks and attractive fiscal

terms.

• 13.1 MMboe net 2P reserves at 31/12/181 c.50/50 oil/gas. Changes to c.25/75 oil/gas with South

Disouq coming on stream during Q4’19 and NW Gemsa becoming uneconomic in 2020 unless

opex is reduced materially.

• YTD production of 3,501 boe/d (net), FY’19 guidance unchanged. Delivered first gas at South

Disouq during Q4’19, on time and on budget. Production ramp up exceeding expectations in first 2

weeks of operations. Significant production uplift expected in 2020 with South Disouq reaching

plateau production rate of c.50 MMscfe/d, offset by removal of NW Gemsa.

• Low cost existing production base with opex at c.$11/boe2, expected to reduce materially with

addition of South Disouq production.

• Delivering on other operational milestones across the portfolio, with high impact exploration drilling

underway in Morocco and planned to commence in Egypt during Q1’20.

• Will continue to actively manage portfolio to optimise returns for shareholders and recycle capital

into growth projects.

• AIM listed with 204.7 million shares outstanding. Market cap. c.US$61.0 million.

• All planned future activities fully funded from cash flows, US$12.6 million cash and US$10.0

million undrawn credit facility (reduced to US$7.5m post-period end, in line with the existing facility

repayment schedule). No overdue oil and gas sales receivables.

• New Exco team established in June 2019. CEO of Waha Capital, SDX’s largest shareholder,

appointed to Board on 19 November 2019.

Egypt: Four concessions

Morocco: Five concessions

1: 2018 independent CPR available on SEDAR.

2: $11/boe based on reported production for the nine months to 30/9/19, reflecting entitlement volumes for Meseda & Rabul. When reflecting operations and working interest volumes for Meseda & Rabul, opex/boe drops to $8/boe.


4

PORTFOLIO


5

EGYPT

FOUR CONCESSIONS

1. South Disouq

2. West Gharib

3. North West Gemsa

4. South Ramadan

Maximising value from South Disouq across the

exploration & production life cycle


6ASSET OVERVIEW

SOUTH DISOUQ (1/4)Current status

• First gas milestone was achieved in Q4’19, on time and on budget.

• Production ramp up exceeding expectations with production of 35 MMscfe/d achieved within 2 weeks of start up.

• 100 bcf gross of 2P reserves (55bcf net to SDX). Mgt Estimate.

• Gas price US$2.85/mcf, Opex estimated at < US$0.30/mcf, Government take c.51%.

• Exploration campaign planned to commence Q1’20.

Key near-term activity

• Operations ramp up to targeted gross plateau production of 50 MMscfe/d/8,333 boed (27.5 MMscfe/d/4,583 boed net to SDX), expected in Q1’20.

• Exploration campaign planned to commence Q1’20. Total mean prospective resources estimated at gross 300 bcf (50 MMboe), (165bcf (27.5 MMboe net to SDX)).

FY 2019 guidance

• Production: First gas achieved in Q4’19, with gross plateau production rate of 50 MMscfe/d expected to be reached in Q1’20.

• Capex: US$35.5 million gross (US$19.5 million net) relating to CPF, 12” export pipeline and 6” well flowlines. US$5.3 million remaining (net to SDX US$2.9 million all of which to be funded by future accounts receivable offsets).

South Disouq licence interests

SDX working interest 55%, Operator

Partner IPR (45%)

2P Reserves1 37.2 bcf W.I.

South Disouq licence map



7ASSET OVERVIEW

SOUTH DISOUQ DEVELOPMENT PROJECT (2/4)• First gas achieved in Q4’19, with all four discovery wells hooked up and producing at their expected rates of between 8 MMscf/d and 15

MMscf/d.

• Production ramp up exceeding expectations with production of 35 MMscfe/d achieved within 2 weeks of start up.

• No cost overruns. Remaining gross capex of US$3.1 million (net to SDX US$1.7 million) to be entirely funded by AR offset.

Key Milestone Status

Factory acceptance test of CPF and Compressor. Complete

CPF & compressor shipped to Egypt, clear Customs & delivered to S. Disouq site. Complete

Completion of assembly, commissioning & testing of infrastructure. First gas achieved. Complete


8ASSET OVERVIEW

SOUTH DISOUQ DEVELOPMENT PROJECT (3/4)

South Disouq development map and schematic

Simple process:

• Gather the produced gas to the inlet manifold;

• Separate condensate and water from gas and truck away condensate for sale and water for treatment;

• Compress gas to export line pressure and flow gas to metering station and export to the Grid via a 10km 12” pipeline.


9ASSET OVERVIEW

SIGNIFICANT EXPLORATION POTENTIAL (4/4)

• c.300 bcf of unrisked prospective resources in five prospects with two further Cretaceous leads.

• Kafr el Sheikh prospects are stratigraphic traps and Cretaceous prospects are four-way dip closures.

• Drilling campaign to commence Q1’20 with Salah and Sobhi, subject to final partner approval. If successful, low-cost tie in to existing CPF will generate attractive returns.

• Table shows revised Prospect Volumes following updated 3D seismic interpretation across the block.

Prospect

EUR bcf

(unrisked)

mean1

GCos

Salah2 75.1 35%

Sobhi 31.8 35%

Warda 14.1 35%

Mohsen 16.6 22%

Young3 162.0 17%

Total (unrisked) 299.6

1: SDX Management estimates

2: Salah reflects the aggregate mean EUR for three horizons and the CoS of one

3: Young reflects the aggregate mean EUR for four horizons and the CoS of one

SOBHI

SALAH

WARDA

MOHSEN

YOUNG

LEGEND

3D SEISMIC

DEVELOPMENT LEASE

EXPLORATION CONCESSION

KAFR EL SHEIK PROSPECT

CRETACEOUS PROSPECT

CRETACEOUS LEAD

GAS FIELD

GAS PIPELINE

South Disouq licence map


10ASSET OVERVIEW

WEST GHARIB (MESEDA AND RABUL FIELDS)Current status

• Stable production from a well-understood asset.

• YTD’19 production: 4,271 bbl/d (gross)/814 bbl/d (net).

Key 2019 activity

• Rabul-7 discovery announced 26 June 2019 adding gross c.415 bbl/d.

• MSD-19 discovery announced 18 September 2019 adding gross c.315 bbl/d.

• Further infill and exploration drilling planned in 2020 and 2021.

• Five planned workovers (ESP replacements), one water injector conversion, a facilities upgrade and other workovers as necessary.

FY 2019 guidance

• Production: 4,000-4,200 bbl/d average (gross).

• Capex: US$5.4 million (gross) (US$2.7 million net, US$1.2 million YTD) for two development wells, five workovers, one water injectors and facilities investment.

Meseda & Rabul licence interests

SDX working interest 50% (19.06% entitlement)

Partner/Operator Dublin International (50%)

2P Reserves1 4.56 MMbbl W.I./1.74 MMbbl N.E.

Meseda & Rabul licence map

Meseda & Rabul sales history


Rabul-4

&

Rabul-5

MSD-16 MSD-15 Rabul-7Rabul-2 MSD-19


11

NW Gemsa licence interests

SDX working interest 50%

Partner NPIC (50%, Operator)

2P Reserves1 1.64 MMboe W.I.

ASSET OVERVIEW

NORTH WEST GEMSACurrent status

• Late-life asset with increasing water cut and decliningproduction.

• Objective is to reduce costs to extend the economic lifebeyond early 2020 or maximise value on exit.

• YTD’19 production: 3,830 boe/d (gross)/1,915 boe/d(net).

Key 2019 activity

• Ten workovers to offset production decline.

• Focus on reducing costs to extend economic life, withminimal future investment planned.

• Likely uneconomic early 2020 and SDX will exit. Stateliable for any decommissioning.

FY 2019 guidance

• Production: 3,000-3,200 boe/d (gross).

• Capex: US$4.0 million (gross) (US$2.0 million net, US$1.0 million YTD) for ten workovers.

NW Gemsa licence map

NW Gemsa sales history


AASE-25 Ola-4AASE-27


12

Current status

• SRM-3 well spud on 20/6/18 – rig was released 15/4/19.Drilled as a deviated well from the existing SRM-2platform.

• P50 discovered volumes: ~1 MMbbls oil (gross) forThebes, Brown Limestone, Sudr reservoirs combined.

• Based on SRM-2 historical production, SRM-3 isanticipated to come on-line at around gross 1,300 bopdwith an annual decline rate of 30-35%.

• First oil expected H1’20 following infrastructure completion.

Key 2019 activity

• Field visit to inspect the onshore pipeline is completeand remaining infrastructure cost to first oil is estimatedat US$2.3 million (gross) (US$0.3 million net to SDX).

South Ramadan licence interests

SDX working interest 12.75%

PartnerPICO (37.5%, Operator),

GPC (50%)

Reserves1 0.1275 MMbbls W.I.

ASSET OVERVIEW

SOUTH RAMADAN South Ramadan map

1: SDX Management estimates.


13

MOROCCO – GHARB

BASIN

FIVE CONCESSIONS

High margin gas with transformational exploration

potential


14ASSET OVERVIEW

MOROCCO (1/2)

Morocco Licence Interests

SDX working interest 75%, Operator

Partner ONHYM (25%)

2P Reserves1 4.2 bcf W.I.

Morocco licence map (Five Concessions)


Current status

• Growing, low cost gas production, sold at attractive prices to diverse (eight) customers, with low payment risk.

• YTD’19 production: 6.2 MMscf/d (gross)/4.6 MMscf/d (net).

• Average gas price US$10-US$11/mcf, with opex estimated at US$0.7/mcf, generating high net backs.

• Seven out of eight customers at stabilised consumption in Q3’19.

• Favourable fiscal regime, including 10-year tax holiday from first production.

• SDX owns 75% of and operates pipeline infrastructure direct to customers.

Key 2019 activity

• Twelve well campaign is underway and expected to complete in Q1’20.

• Campaign designed to target enough reserves to satisfy existing customers’ demand and to test new play opening areas across the portfolio that could grow and transform SDX’s Moroccan business.

FY 2019 guidance

• Production: 6-6.5 MMscf/d average sales (gross) assuming no new customers or growth in expected demand from existing customers.

• Capex: US$14.0 million (gross) (US$12.0 million net, US$4.5 million YTD - expected that c.US$0.8 million of remaining US$7.5 million will be paid in 2020) for portion of twelve well campaign and investment in facilities.


15ASSET OVERVIEW

MOROCCO 12-WELL DRILLING PROGRAMME (2/2)

• Twelve well drilling programme is underway and targeting 15 bcf (gross unrisked mean prospective resources1) across a diverse set of opportunities:

o Seven low risk biogenic gas targets located near existing infrastructure in Gharb Centre;

o Two moderate risk wells, a step out exploration well in the Beni Malek (BMK-1) cluster area, with good follow on potential, and, a moderate risk prospect at OYF-2 with good volume potential. Prospects here are lookalikes to previous discoveries in Sebou production area;

o Up to three higher risk exploration prospects at LallaMimouna re-testing the Lalla Mimouna thermogenic gas play at LNB-2, LMS-2 and LGC-1.

• Wells in Lalla Mimouna and BMK-1 are play opening and could transform the growth of SDX’s Moroccan business.

• Target to drill, complete and connect wells for an average cost of c.US$2.0 million per well.

• 2018 independent CPR1 identified prospect inventory in excess of 100 bcf (gross unrisked mean prospective resources).

Morocco prospect map

SAH-5



16

VALUATION AND

SHARE PRICE

PERFORMANCE


17SDX ENERGY

VALUATION & SHARE PRICE PERFORMANCE

Summary valuation / liquidity information

Independent 2P reserves valuation

(NPV[10] at 31/12/18)1 $94 million

Market cap (20/11/19) $61 million

Net cash (30/9/19) $13 million

Liquidity (30/9/19)

(cash $13 million plus EBRD $10

million undrawn credit facility)

$23 million2

Net Working Capital (excl. Cash)

(30/9/19)

$7 million


2: Availability of EBRD credit facility reduced by US$2.5 million at 31 October 2019 in line with its amortisation schedule. Discussions with EBRD commenced to extend tenor and re-establish US$10 million availability.

-

10

20

30

40

50

60

70

80

Jan

-18

Fe

b-1

8

Ma

r-1

8

Ap

r-18

Ma

y-1

8

Jun

-18

Jul-

18

Au

g-1

8

Se

p-1

8

Oct-

18

Nov-1

8

Dec-1

8

Jan

-19

Fe

b-1

9

Ma

r-1

9

Ap

r-19

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Se

p-1

9

Oct-

19

Nov-1

9

SDX Energy share price (p/share) vs. AIM O&G Index (re-based) & Brent (re-based)

since 1/1/18

SDX Energy AIM O&G Brent

Half Year results and

positive update on

progress with South

Disouq development


18

UPCOMING ACTIVITY

AND VALUE

CATALYSTS


19SDX ENERGY

UPCOMING ACTIVITY AND VALUE CATALYSTS

Material upcoming catalysts in next 12-15 months

• South Disouq (55% share) plateau production of 50 MMscfe/d (gross) at $2.85/mcf from Q1’20. Opex is estimated at < US$0.30/mcf.

• Completion of twelve well drilling campaign that is currently underway in Morocco, targeting 15 bcf of unrisked prospective resources. Gas is

sold at average price of $10-$11/mcf and opex is estimated at US$0.7/mcf.

• Exploration drilling in South Disouq in 2020, pending completion of partner discussions. 300 bcf of prospective resources in five targets.

South Disouq

Central Processing Facility

First exploration well (Kafr el Sheikh) Salah

Second exploration well (Kafr el Sheikh) Sobhi

Third exploration well (Cretaceous)

Fourth exploration well (Cretaceous)

Fifth exploration well (Cretaceous)

Morocco

Twelve well drilling campaign

Meseda

Workovers

Meseda-17

Meseda-20

North West Gemsa

Workovers

Legend Milestone Facilities Exploration drilling Development drilling Workovers

Young

Cretaceous #2

Cretaceous #3

Asset Activity2019 Work Programme 2020 Work Programmme

Q4 Q1 Q2 Q3 Q4

Twelve well campaign commences

First Gas milestone achieved

Exploration drilling commences


20

EXECUTIVE

COMMITTEE AND

BOARD OF

DIRECTORS PROFILES


21SDX ENERGY

EXECUTIVE COMMITTEEExco established June 2019 to ensure delivery of key projects

Mark Reid (CEO)

Held Board positions in E&P sector for 11 years. Formerly CFO of Aurelian Oil & Gas PLC and Chariot Oil & Gas PLC. Significant M&A and equity and

debt capital markets experience. 14 years corporate finance and banking experience, 7 years as an Emerging Market E&P banker, Head of Oil and Gas at

BNP Paribas Fortis, London and Director at Ernst & Young Corporate Finance, London.

Nick Box (CFO)

Mr. Box leads SDX’s finance team, having previously worked for PwC in the UK, Australia and Mongolia. He has 13 years professional experience in

accounting, capital markets transactions, post-merger integrations and internal controls.

Rob Cook (Subsurface and Operations)Prior to joining SDX, Dr. Cook was a senior G&G professional for 25 years at BG Group plc, playing a key role in several of BG’s major developments

in both North Africa (resident in Cairo) and Brazil. Dr. Cook has also been integral to SDX’s recent positive exploration results in Egypt and Morocco.

Roger Wibrew (Facilities and HSE)Mr. Wibrew has over 18 years’ process engineering experience in the upstream onshore oil and gas industry. He has previously worked for Hess in

Algeria and West Texas where he was responsible for facilities engineering and capital projects, including gas plants producing up to 330MMscf/d.

Mohamed Farid (Egypt Country Manager)Mr. Farid has 28 years’ experience, the majority of which is in oil and gas (upstream & downstream) having worked for BG and BP in Africa, Europe,

Asia and the Middle East where he acquired significant exposure to M&A in the energy sector.

Lonny Baumgardner (Morocco Country Manager)Mr. Baumgardner has 25 years’ experience across many elements of the oil and gas business, having worked in Canada, the Kingdom of Saudi Arabia,

Greece, Australia, and on two ventures in Egypt. He has resided in Rabat, Morocco since 2016 and is responsible for all aspects of SDX’s business in

country.


22SDX ENERGY

CHAIRMAN AND NON-EXECUTIVE DIRECTOR PROFILES

Michael Doyle Non-Executive ChairmanMr Doyle is a Professional Geophysicist and a Certified Corporate Director with more than 35 years industry experience. Mr Doyle is aprincipal of privately held CanPetro International Ltd and its affiliates. He has been a director of Equal Energy Ltd since 1997.Mr Doyle was previously a principal and Chief Executive Officer of Petrel Robertson Ltd where he was responsible for providing advice andproject management to clients throughout the world. Prior to that, he held a variety of exploration positions at Dome Petroleum and AmocoCanada. Mr Doyle holds a Bachelor of Science (Maths and Physics) from University of Victoria.Mr Doyle was a founding director and Chairman of Madison PetroGas from its inception in 2003.

David Mitchell DirectorMr Mitchell is a successful oil and gas executive with more than 35 years proven track record in the international arena, including with BP and Nexen.During this time, Mr Mitchell discovered and built projects with his teams in the Middle East, West Africa, Latin America and the North Sea. He haslived and worked in a number of countries including a year with BP Egypt. Mr Mitchell received his BSc Honours, Geology from the University ofLondon and his MPhil Mining Engineering from the University of Nottingham, UK.Mr Mitchell was appointed CEO of Madison PetroGas on joining in 2008, building the company prior to the merger with Sea Dragon Energy.

Timothy Linacre DirectorMr Linacre is a Fellow of the Institute of Chartered Accountants in England and Wales and an experienced City practitioner. After qualifying withDeloitte Haskins and Sells he spent 5 years with Hoare Govett before moving to Panmure Gordon in 1992, working at that firm for 20 yearsincluding 8 years as CEO. Tim is currently Senior Managing Partner at Instinctif Partners, a leading Business Communications firm. During his careerin the City, Tim has advised a range of businesses in a variety of sectors, including oil and gas, from FTSE 100 companies to fast growing listed andprivate companies.

Amr Al MenhaliDirectorMr Al Menhali has a track record of over 20 years in senior leadership positions across a number of high profile institutions, with expertise instrategy, finance, risk, credit and corporate governance. He has also served on the boards of prominent regional and international companies indiverse sectors and industry bodies, including the UAE Banks Federation. He holds a Bachelor’s Degree, with Honours, in Business Administration,and also completed the General Management Program at Harvard Business School in Boston.Mr Menhali joined Waha Capital as Chief Executive Officer in September 2019.


23

APPENDIX


24YTD FINANCIAL RESULTS

FINANCIALS

• Net revenue of US$38.0 million, 5% lower than YTD’18 due to 11% decrease in realised oil price offset by 1% production increase to 3,501 boe/d.

• On 7 November 2019, first gas was achieved from the South Disouq gas field in Egypt (SDX: 55% working interest and operator) with production increasing ahead of expectations from c.24 MMscfe/d to c.35 MMscfe/d in the first two weeks of operations.

• 1% YoY production increase driven by Meseda (18%) and Morocco (20%) offset by NW Gemsa (-10%).

• Netback of US$27.5 million, 13% down on YTD’18 mainly due to increased opex as a result of:

• Decrease in revenue, as explained above

• Increased workover activity in YTD’19; and

• Allocation of costs to opex greater in YTD’19, with these costs allocated to capex/drilling campaigns in Morocco and NW Gemsa in YTD’18.

• Operating cash flow before capex in YTD 2019 remained robust

at US$18.0 million.

• US$22.8 million of capex invested in period, of which, US$14.3 million was for the South Disouq development.

• Cash at 30 September 2019, US$12.6 million (31 December 2018, US$17.3 million) with the US$10.0 million EBRD credit facility

Nine months ended 30

September

US$ million except per unit amounts 2019 2018

Net revenues 38.0 39.8Netback (1) 27.5 31.3Net realised average oil/service fees - US$/barrel 56.44 63.69Net realised average Morocco gas price - US$/mcf 10.32 10.52Netback – US$/boe 28.76 33.18EBITDAX (1) (2) 23.4 27.2Exploration & evaluation expense (“E&E”) (0.8) (5.5)Depletion, depreciation and amortisation (“DD&A”) (18.4) (10.9)Total comprehensive income - 4.1Net cash generated from operating activities 18.0 27.3Cash and cash equivalents 12.6 18.7

(1) Refer to “Non-IFRS Measures” section of the YTD & Q3 2019 Financial & Operating results press release for

details of Netback and EBITDAX.

(2) EBITDAX for YTD 2019 and YTD 2018 includes non-cash revenue relating to the grossing up of Egyptian

Corporate Tax on the North West Gemsa PSC which is paid by the Egyptian State on behalf of the Company

(YTD 2019: US$2.7 million, YTD 2018: US$3.7 million).


25

Asset Gross production 9

months to 30

September 2019

Gross FY 2019

production

guidance

Meseda & Rabul 4,271 bbl/d 4,000 – 4,200 bbl/d

NW Gemsa 3,830 boe/d 3,000 – 3,200 boe/d

Morocco 6.2 MMscf/d 6.0 – 6.5 MMscf/d

Production for nine months to 30 September 2019 in line with FY 2019 guidance.

Meseda reflects production from new discoveries

• Rabul-7 discovery announced 26 June 2019 adding gross c.415 bbl/d of production.

• MSD-19 discovery announced 18 September 2019 adding gross c.315 bbl/d of production.

NW Gemsa is declining as expected, but workovers are partially offsetting this.

• Focus on Operator cost reductions to remain economic through 2020, otherwise SDX will seek to exit.

Morocco production reflects stabilised consumption from seven customers out of eight in total.

• Consumption from new customers increased in 2019 due to operational ramp-up.

YTD FINANCIAL RESULTS

OPERATIONS


26Disclaimer

This document, which is personal to the recipient, has been issued by SDX Energy plc (the “Company”). This document does not constitute or form any invitation to engage in

investment activity nor shall it form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company,

nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute

a recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale

in the United States.

This document is being supplied to you solely for your information. The information in this document has been provided by the Company or obtained from publicly available

sources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or

warranty, express or implied, is given by or on behalf of the Company or any of the Company’s directors, officers or employees or any other person as to the accuracy or

completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’s members, directors,

officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in

connection therewith.

Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as

a guide to future performance.

Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in

the United States of America, its territories or possessions. Neither this document nor any copy of it may be taken or transmitted into Australia, Japan or the Republic of South

Africa or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian,

Japanese or South African securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document

comes should inform themselves about, and observe, any such restrictions.

Forward-looking Information

Certain statements contained in this presentation 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 the Company’s plans, the timing of completion of the South Disouq central processing

facility, timing of completion of the export pipelines and well tie-ins, production targets, future drilling, ESP replacement, field facility upgrades, well workovers, and the timing

and costs thereof, as well as capital expenditures, operational expenditures, the Company’s 2019 outlook, should all 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 the Company 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; the timing of and the Company’s ability to obtain regulatory and statutory approvals in connection with the Company’s plans and the availability

and cost of labour and services.

All timing given in this presentation, 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

presentation, the Company shall update the market without delay.


27Disclaimer

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; 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 reference SDX’s Management’s Discussion & Analysis for the nine

months ended 30 September 2019, 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, including its exploration activities.

The forward‐looking information contained in this presentation 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.

Oil and Gas Advisory

Certain disclosure in this news release constitute “anticipated results” for the purposes of National Instrument 51-101 – Standards for Oil and Gas Activities of the Canadian

Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the

Company’s resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume, flow rate, production

rates, porosity and pay thickness attributable to the resources of the Company. Such estimates have been prepared by management of the Company and have not been prepared

or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, including those described above and

various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such

resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.

Prospective Resources

The prospective resource estimates disclosed herein have been prepared by an independent qualified reserves evaluator, ERC Equipoise Limited, in accordance with the

Canadian Oil and Gas Evaluation Handbook. The prospective resources disclosed herein have an effective date of 1st January 2019. Prospective resources are those quantities of

gas, estimated as of given date, to be potentially recoverable from undiscovered accumulations through future development projects. As prospective resources, there is no

certainty that any portion of the resources will be discovered. The chance that an exploration project will result in a discovery is referred to as the "chance of discovery" as

defined by the management of the Company. There is no certainty that it will be commercially viable to produce any portion of the resources discussed herein; though any

discovery that is commercially viable would be tied back to the Company’s pipeline in Morocco and then connected to customers’ facilities within 9 to 12 months of discovery.

Based upon the economic analysis undertaken on any discovery, management has attributed an associated chance of development of 100%. Anticipated results are subject to

certain risks and uncertainties, including various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and

engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate.

Actual results may vary, perhaps materially.


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Disclaimer

There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources,

but ranges are defined based on data from the Company’s nearby existing analogous wells. Some of the risk and uncertainties are outlined below:

• Petrophysical parameters of the sand/reservoir;

• Fluid composition, especially heavy end hydrocarbons;

• Accurate estimation of reservoir conditions (pressure and temperature);

• Reservoir drive mechanism;

• Potential well deliverability; and

• The thickness and lateral extent of the reservoir section, currently based on 3D seismic data.

Use of the term “boe” or the term “MMscf” may be misleading, particularly if used in isolation. A “boe” conversion ratio of 6 Mcf: 1 bbl and a “Mcf” conversion ratio of 1bbl: 6

Mcf are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This document has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this

document.


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1 CORPORATE PRESENTATION - SDX Energy Plc€¦ · Maximising value from South Disouq across the exploration & production life cycle. SDX ENERGY ... Salah reflects the aggregate mean

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