SDX Energy Corporate Presentation 1 June 2020 · SDX ENERGY 4 FY 2020 US$28.2MM capital programme fully-funded from resilient cash flows, even under low oil prices, and strong liquidity

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1SDX Energy Corporate Presentation

June 2020


2

SDX Energy overview

Company Overview 3

2020 Guidance and Outlook 4

Core Operated: South Disouq 6

Core operated: Morocco 11

Core Non-Operated: West Gharib 15

Non-Core: North West Gemsa & South

Ramadan17 & 18

Valuation 20

Upcoming Activity and Valuation Catalysts 22

Exco and Board Bios 24 & 25

SDX Summary 26

Significant Shareholders 28

Appendix 29


3Company overview

Egypt: Four Producing Concessions

Morocco: Five Development /

Production concessions

(1) The Company’s Forms 51-101 F1, F2 and F3, including details of oil price assumptions, are available on SEDAR. 51-101 forms relate to oil and gas activities and include audited reserves

evaluation. SDX is a Designated Foreign Issuer within the meaning of the Canadian National Instrument 71-102-Continuous Disclosure and Other Exemptions Relating to Foreign Issuers.

AIM-listed E&P with nine concessions in Egypt and Morocco providing high-

margin, fixed-price, gas-weighted production, resilient cash generation and

downside protection against lower oil prices.

High-impact exploration upside potential in existing licence areas in Egypt and Morocco, de-risked by recent successful drilling campaigns, with a focus on short-cycle, NAV-accretive growth projects and shareholder returns. Recent drilling success at Sobhi could result in 50MMscfe/d plateau at South Disouq

extending to 2026.

Independent 2P reserves valuation (NPV10 at 31/12/19)1 of US$102.4MM.

Market capitalisation of US$46MM as at 18/6/20. 2020 programme to de-risk

NPV10 towards $102.4m valuation.

12.0 MMboe 2P reserves at 31/12/191 c. 72/28% gas/oil, with gas businesses in Egypt and Morocco delivering post-tax operating cash flows c. 90% gas-weighted

in 2020 and 2021 at Brent oil price of $35/bbl. A strong platform to deliver US$102.4 million NPV10 of value. Portfolio also includes 2.6 MMboe of low-risk

contingent resources.

Experienced management team focussed on optimising returns for shareholders

through recycling capital into growth projects. SDX continues to evaluate

inorganic growth opportunities through M&A.


4

FY 2020 US$28.2MM capital programme fully-funded from resilient cash flows, even under low oil prices, andstrong liquidity position

• Post-tax operating cash flows c. 90% gas-weighted in 2020 and 2021 at Brent oil price of $35/bbl.

• US$8.8 million of cash and US$7.5 million of additional liquidity from the undrawn EBRD credit facility as at 31March 20202.

• Discussions are underway with EBRD to extend the length of the facility and to increase its size back to itsoriginal $10 million.

• Majority of 2020 capex is now completed and entering a period of lower capital activity – significant focus oncapital discipline and cash generation.

2020 guidance and outlook

Asset

Gross production Capex US$ million

Actual - 12 months

ended 31 December

2019

Guidance - 12

months ended 31

December 2020

Actual - 3 months

ended 31 March 2020

Actual 3

months ended

31 March 2020

Guidance - 12

months ended

31 December

2020

Core assets

South Disouq – WI1 55% 6.9 MMscfe/d 47 - 49 MMscfe/d 54.5 MMscfe/d US$4.3 million US$10.7 million

West Gharib – WI 50% 4,171 bbl/d 3,200 - 3,300 bbl/d 3,494 bbl/d US$0.5 million US$2.0 million

Morocco – WI 75% 6.4 MMscf/d 6.7- 6.9 MMscf/d 6.9 MMscf/d US$10.7 million US$13.5 million

Non-core assets

NW Gemsa – WI 50% 3,672 boe/d 2,000 - 2,100 boe/d 3,076 boe/d US$nil million US$2.0 million

Entitlement BOE 4,062 boe/d 6,750-7,000 boe/d 8,061 boe/d US$15.5 million US$28.2 million

2020 – A year of significant growth for SDX(1) WI = Working Interest; (2) all references to 31 March 2020 financial information should be read as unaudited.


5

Portfolio overview

Core Operated: South Disouq 6

Core Operated: Morocco 11

Core Non-Operated: West Gharib 15

Non-Core: North West Gemsa & South

Ramadan17


6

Overview & current status

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

• Gross plateau production of 50 MMcfe/d (8,333 boe/d).

• Sobhi discovery in April 2020 adds an additional 24 bcfe(100% SDX)2.

• An extended well test indicated that the optimumproduction rate would be 10-12 MMscf/d.

• Partner IPR must pay 45% share of well cost plus 300%premium should they choose to participate.

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

Key near-term activity

• Sobhi FDP has been submitted to EGAS for approval.

• Sobhi development and tie-in is underway with first gas

targeted for Q1 2021, facilitating extension of 50 MMcfe/d

plateau to mid-2023.

• Mature prospect and lead inventory for a drilling campaign

to commence in 2022 targeting c.100bcf recoverable

resource.

South Disouq overview

South Disouq licence interests

SDX working interest 55%, Operator

Partner IPR (45%)

2P Reserves1 49.0 bcfe W.I.

P50 Recoverable (Sobhi)2 24.0 bcfe W.I.

Total Recoverable 73.0 bcfe W.I.

(1) 2019 independent CPR.

(2) SDX Management estimates; Assuming SDX 100% working interest.

FY’20 Guidance Q1’20 Actuals

Production 47 - 49 MMscfe/d 54.5 MMscf/d

Capex US$10.7 million US$4.3 million


7

• Production performance through Q1 has outperformed the full year guidance.

• Gross plateau production is maintained at ~50MMcfd (8,333boe/d) until mid-2023 with the discovery and

subsequent development of Sobhi (P50 recoverable resource of 24bcf1).

• Success in the drilling of further low-risk exploration opportunities that exist within the South Disouq area of

c.70bcf will extend the plateau further.

• An additional 25bcf of higher risk opportunities have also been identified with work progressing with

identifying further drilling opportunities.

• Fixed price volumes for several years ahead.

South Disouq production ahead of 2020 guidance with Sobhi success expected to extend plateau to mid-2023

Sobhi extends production plateau and de-risks further potential at South Disouq

0

2,000

4,000

6,000

8,000

10,000

Avera

ge D

aily

Pro

duction,

boe

South Disouq Development Forecast (Gross)

South Disouq

(1) Management estimate


8South Disouq – Sobhi Development

• The FDP for Sobhi (Ibn Yunus North) has been submitted to the Egyptian authorities for approval.

• An extended Development Lease has been applied to capture some of the remaining, nearby low-risk prospectivity (Shikabala and Shikabala North).

• Once the FDP has been approved, the SD-12X (Sobhi) well can be rapidly tied into the existing infrastructure at low cost, $3.5 million gross.

• Construction of the 6” flowline will commence towards the end of Q3 2021.

• First gas is targeted for Q1 2021.

• The anticipated production rate for SD-12X is 10-12 MMscf/d.

• Production will be balanced with the existing wells keeping the concession at around 50 MMscfe/d whilst extending the plateau out until mid-2023.

Shikabala

Shikabala North SD-12X

flowline

route

Sobhi

Development

Lease

Central

Processing

Facility

Mohsen

El Deeb

Warda Proposed

reshaping of

South Disouq

Development

Lease

FDP submitted and first gas expected Q1 2021


9

Shikabala North

Shikabala

Warda

Mohsen

El Deeb

Mohsen and El Deeb proposed licencechange

• Approach being made to EGAS / Ministry

to reshape the existing South Disouq

Development Lease to secure these

prospects.

• Mohsen is a basal KES prospect and El

Deeb is a Buried Hill prospect, a new play

concept in South Disouq

• The Buried Hill play is not proven in the

South Disouq concession but is proven at

Damas South Field, 10km to the east.

Sobhi-Shikabala Development Lease

• Sobhi FDP submitted to EGAS will also

secure Shikabala and Shikabala North

prospects.

South Disouq exploration – Sobhi well de-risks c.100bcf of incremental prospective resource

Primary South Disouq Prospects1

Class EUR (bcf) CoS

Warda Prospect 14 50%

Mohsen Prospect 25 51%

El Deeb Prospect 23 29%

Shikabala Lead 22 40%

Shikabala N Lead 12 40%

TOTAL 96

96 bcf of un-risked gas potential identified in 5 prospects(1) SDX Management estimates


10

0

2,000

4,000

6,000

8,000

10,000

Avera

ge D

aily

Pro

duction,

boe

South Disouq Gross ForecastTwo Discoveries

South Disouq Discovery 1 Discovery 2

0

2,000

4,000

6,000

8,000

10,000

Avera

ge D

aily

Pro

duction,

boe

South Disouq Gross ForecastOne Discovery

South Disouq Discovery 1

• Further exploration success similar to the success SDX

had at Sobhi (~24bcf recoverable) has the potential to

extend the concession plateau.

• One successful prospect of a similar size extends the

plateau of ~50 MMscf/d (8,333boe/d) to mid-2025.

• Sobhi will generate an estimated US$25MM* of

undiscounted post-tax cash flow after capex to SDX,

equivalent to US$1.04/mcf.

• Sobhi expected to commence production in Q1 2021 after

completion of Environmental Impact Assessment process,

agreement of landowners’ compensation, obtaining the

necessary Military, Agricultural and Irrigation permits and

completion of the pipeline tie-in.

• Identified follow-on prospects are at comparable depths

and distance from infrastructure as Sobhi and would also

be expected to generate >US$1.0/mcf in post-tax net

cash flow to SDX.

• Two successful prospects have the potential to extend the

plateau out to mid-2026.

• Given that existing plateau production is secured until

2023, SDX would look to drill follow on exploration wells in

2022-23.

With exploration success, South Disouq production plateau of 50MMscfe/d could extend to mid 2026

Incremental production potential with no associated additional facilities capex* SDX Management estimates; Assumes SDX 100% working interest; If IPR chooses to participate it will be required to pay its 45% share of US$3.7MM in costs incurred in Sobhi discovery + 300% penalty


11


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

• Average gas price US$10-US$11/mcf, with 2020 opexestimated at US$0.9/mcf, generating high netbacks.

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

• SDX owns 75% of, and operates, pipeline infrastructuredirect to customers.

• OYF-2 and BMK-1 discoveries demonstrate additionalrunning room in the Gharb Basin.

• Three customers that required COVID-19 shutdowns haverestarted consumption of gas.


• Testing of LMS-2 discovery to de-risk this large structureand follow on potential, once COVID-19 restrictions inMorocco are lifted.

• Q3/Q4 2021 drilling campaign to appraise OYF and BMKareas following successful drilling in 2019/20 campaign.

• Evaluating inorganic growth opportunities identified outsideof the Gharb Basin.

Morocco overview

Morocco Licence Interests

SDX working interest 75%, Operator

Partner ONHYM (25%)

Reserves & valuation 31/12/191 31/3/202

2P Reserves 4.5 bcf W.I. 6.0 bcf W.I.

NPV10 US$ million 36.4 41.9

1: 2019 independent CPR

2. Reserves Audit, Morocco Assets as of 31st March 2020

Guidance

Update

FY’20

GuidanceQ1’20 Actuals

Gross Production 6.7-6.9 MMscf/d 6.9 MMscf/d

Capex US$13.5MM US$10.7MM

Attractive fiscal regime and robust gas-sales prices


12

• The successful drills at BMK-1 and OYF-2 in the Guebbas 3D acquired in 2018 have deriskednearby prospect-rich areas.

• In excess of 19 bcf* (Mean unrisked) can be targeted as and when needed in future drilling campaigns, in a drill-to-demand approach.

• The discoveries will allow SDX to expand its infrastructure so that future successful wells have minimal connection costs.

• Regional analyses are ongoing to define the best areas for future seismic acquisitions.

• SDX is keen to continue drilling in these newly opened-up areas, proving up additional volumes.

Gharb Future Exploration - c.20 bcf of follow on de-risked prospectivity identified

2019/20 drilling campaign has de-risked larger pools of gas in Gharb Basin* SDX Management estimates


13Morocco – LMS-2 well in Lalla Mimouna similar to

LAM-1 discovery in 2015

LAM-1

LMS-2

LAM-1

Reservoir

LMS-2 LMS-1

Low quality (tight?) reservoir

• LMS-2 has similarities

with successfully tested

tight reservoirs at LAM-1.

• LMS-2 better quality

(sandier) but containing

reactive clays.2.1 MMscf/day

on 18/64” choke>100 litres of condensate

recovered after test

LAM-1 drilled by

previous operator

in 2015


14

• Completion strategy adapted to the LMS challenges for

successful test: powerful charges in under-balanced

condition and multidirectional firing for maximum

penetration.

• A successful test at LMS-2 would de-risk the rest of this

large compartmentalised feature, unlocking a further 6

bcf* of recoverable resources, for a total in excess of 7.5

bcf* recoverable for the LMS discovery.

• Success at LMS-2 also de-risks similar prospects (2

prospects; 3.4 bcf* recoverable resources) already

identified in the portfolio.

• It also increases SDX’s confidence in the Lalla Mimouna

Nord concession, where another 25.5 bcf* recoverable

resources are identified in multiple prospects.

Increased confidence in the Lalla Mimouna Nord Area

Morocco – LMS-2 and Lalla Mimouna Future Exploration

Potential future well locations ?

* Gross Mean unrisked

LMS-2 to be tested after COVID-19 restrictions lifted to allow perforations and

testing crews into country.


15


• Situated in the Eastern Desert of Egypt.

• Heavy oil reservoirs in the Asl (Meseda) and Yusr and Bakr (Rabul) Members of the Miocene Rudies Formation.

• Regular appraisal/development wells to generate stable production from a well-understood asset.

• 2019 production: 4,171 bbl/d (gross)/795 bbl/d (net).


• Drill 8-10 wells over the next three years to upgrade 2.3 MMboe from 2C to 2P and increase production commensurately.

West Gharib (Meseda and Rabul Fields)

Meseda & Rabul licence interests

SDX working interest 50%

Partner/Operator Dublin International (50%)

2P Reserves1 2.20 MMbbl W.I.

2C Resources1, 2 2.34 MMbbl W.I.


(2) The 2C volume relates to volumes identified in the fields that require an infill

drilling campaign yet to be fully defined.

Guidance Update FY’20 Guidance Q1’20 Actuals

Gross Production3,200 - 3,300

bbl/d3,494 bbl/d

Capex US$2.0 million US$0.5 million

Production growth potential at low cost

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Avera

ge D

aily

Pro

duction,

boe

West Gharib Base Case Forecast (Gross)

West Gharib

W Gharib CR

2P1

2C1



16Additional Meseda infill drilling of 8-10 wells expected to

increase production• Low-risk infill drilling campaign with low-cost wells

in order to recover the 2.3 MMbbl1 (W.I.) of

contingent resources.

• 8 to 10 infill wells are planned (plus water injector

wells) for a gross cost of approximately US$8.0-

10.0 million (SDX: US$4.0-5.0 million) to grow

production over the next three years.

• After taking account of well costs & other

infrastructure tie-in capex, this incremental

production is expected to generate net to SDX

approximately US$5 - 6 million in low-risk,

undiscounted post-tax cash flow.

• Proposed by Dublin, supported by SDX.

• Drilling would start in 2021 at the rate of three to

four wells per year (indicated by operator).

• No significant facilities upgrade required.

• SDX continues to look at new infill opportunities.

• SDX also continues to look at exploration

opportunities in and around the concession to fuel

further growth.

• SDX has identified ~12 MMbbl gross mean of

prospective recoverable resources for potential

future drilling.

- Existing producing well

- Agreed targets to drill in 2021

- Tier1 targets to drill in 2022-2023

Running room at Meseda from low-cost infill drilling


(2) Assumes long-term Brent oil price of US$45/bbl less 29% discount; 10 wells drilled at US$1.0MM each; variable opex of US$2.80/bbl.


17


• Situated in the Eastern Desert of Egypt.

• Light oil (42o API) produced from the Shagar and Rahmisandstone members of the Kareem Formation.

• Late-life asset with increasing water cut and declining production.

• The Company may exit during 2020 if sufficient cost savings cannot be achieved by the operator. Egyptian State liable for any decommissioning.

• Discussions initiated with JV partner on process of exiting asset.

Key near term activity

• Due to likely exit in the coming months, significant reduction

in FY’20 capex guidance is expected.

Non-Core Asset: Egypt – North West Gemsa

NW Gemsa licence interests

SDX working interest 50%

Partner NPIC (50%, Operator)

2P Reserves1 0.79 MMboe W.I.

1: 2019 independent CPR.

Guidance

UpdateFY’20 Guidance Q1’20 Actuals

Gross Production2,000 - 2,100

boe/d3,076 boe/d

Capex US$2.0 million US$nil million

Discussions to exit initiated


18


• Situated in the Gulf of Suez.

• Light oil produced from stacked reservoirs (Thebes to Matulla Formations).

• P50 discovered volumes: c.1.5 MMbbls oil (gross) for Thebes, Brown Limestone, Sudr reservoirs combined.

• SRM-3ST came on-line 17th April 2020 and is currently (June 2020) producing at a stable rate of ~800 bbl/d (gross).

• Non-core asset and SDX is seeking to exit the position.

Non-Core Asset: Egypt – South Ramadan

South Ramadan licence interest

SDX working interest 12.75%

PartnerPICO (37.5%, Operator), GPC

(50%)

Reserves1 0.19 MMbbls W.I.

Contingent Resouces2 0.15 MMbbls W.I.


(2) Requires an additional well.

South Ramadan online and producing ~800bopd (gross)


19

Valuation


20Valuation

Given SDX’s resilience to low oil prices, the Group’s market cap reflects a materially undervalued position

compared to its underlying asset base indicated by the independent 2P reserves valuation.

• Shares at 18.0p/sh trade at an operating cash flow (2019) multiple of 1.8x.

(1) The Company’s Forms 51-101 F1, F2 and F3, including details of oil price assumptions, are available on SEDAR. 51-101 forms relate to oil and gas activities and

include audited reserves evaluation. SDX is a Designated Foreign Issuer within the meaning of the Canadian National Instrument 71-102-Continuous Disclosure and

Other Exemptions Relating to Foreign Issuers.

(2) (2) Based on Independent 2P reserves valuation and adjusts for lower Brent oil price assumption only.

Summary valuation / liquidity information US$ million

Independent 2P reserves valuation (31/12/19)1 102.4 NPV10

2P reserves valuation assuming $35/bbl Brent in 2020 and $40/bbl in 2021+ (31/12/19)2 81.3 NPV10

Market cap (18/6/20) 46.0

Net cash (31/03/20 - unaudited) 8.8

Liquidity (31/03/20)

(cash $8.8 million plus EBRD $7.5 million undrawn facility- unaudited)16.3


21

Upcoming activity & value

catalysts


22

SOUTH DISOUQ

MOROCCO

WEST GHARIB

Salah - Uneconomic Volumes

Sobhi discovery - est. 24Bcf recoverable

8 from 10 wells successful

Online - 300boe/d

First exploration well

Second exploration well

Sobhi tie in

South Disouq compression

IY-2 drilling & tie-in

Exp drilling (Mohsen, Shikabala)

Exp drilling (Warda)

Ten-well drilling campaign

LMS-2 well test

Appraisal drilling campaign

Rabul-3 drilling

Meseda-17 drilling

Meseda-20 drilling

Additional infill drillilng

Infill drilling ('22)

Complete

Budgeted

Contingent

2020-22 Activities and Value Catalysts*

Significant value catalysts in Egypt and Morocco in the next three years

Key upcoming catalysts

• Late Q3/early Q4’20 LMS-2 well test in Morocco subject to COVID-19 restrictions being lifted.

• Q1’21 Sobhi well comes on stream.

• Q1’21 West Gharib drilling campaign commences comprising of 8-10 development wells over three years to

convert 2.2 MMbbls of contingent resources to 2P reserves and increase production to gross 4,000bbl/d.

• Q3/Q4 2021 appraisal drilling commences at OYF, BMK and LMS areas in Morocco.

• Q1’22 commencement of follow on exploration drilling in South Disouq targeting up to 100 bcf of prospective

resources.

*Includes all budgeted and contingent capex elements

2020 2021 2022


23

Executive Committee and Board

of Directors profiles


24

Mark Reid

CEO

(London)

Experienced Management Team (ExCo)

Strong Management Team with relevant experience

Nick Box

CFO

(London)

Roger Wibrew

Facilities & HSE

(London)

Rob Cook

Subsurface & Operations

(London)

Alistair Green

Business Development

(London)

Lonny Baumgardner

Morocco Country Manager

(Rabat)

Mohamed Farid

Egypt Country Manager

(Cairo)

• Board positions in E&P sector for 11 years incl. CFO role at Aurelian and Chariot

• 14 years corporate finance and banking experience including Head of Oil and Gas

at BNP Paribas Fortis, London

• Director at Ernst & Young Corporate Finance, London

• Previously worked for PwC in the UK, Australia and Mongolia

• 14 years professional experience in accounting, capital markets transactions, post-

merger integrations and internal controls

• Senior G&G professional with 25 years at BG Group plc

• Key roles in several of BG’s major developments in both North Africa and Brazil

• Integral to SDX’s exploration results in Egypt and Morocco

• More than 18 years’ process engineering experience in upstream oil and gas

• Worked for Hess in Algeria and W. Texas where he was responsible for facilities

engineering and capital projects, including gas plants producing up to 330MMscf/d

• 12 years with BG Group, based in the UK and internationally

• Broad commercial and technical experience having previously held roles in

reservoir engineering and in petroleum economics

• 28 years’ experience, the majority of which is in oil and gas

• Worked for BG and BP in Africa, Europe, Asia and the Middle East

• Significant exposure to M&A in the energy sector

• 25 years’ experience across many elements of the oil and gas business

• Worked in Canada, the Kingdom of Saudi Arabia, Greece, Australia, and Egypt

• Resides in Rabat and is responsible for all aspects of SDX’s business in country

Extensive North

African Experience

Strong In-house

Technical Capabilities- Exploration

- Production Ops

- Facilities Management

Effective JV

Management

Strong Financial

Management

Substantial Capital

Markets Experience

Demonstrated Organic

and Inorganic Growth


25Chairman and Non-Executive Directors

Diverse and varied Board experience with representation from largest shareholder

Michael Doyle (Non-Executive Chairman)

• Mr Doyle is a Professional Geophysicist and a Certified Corporate Director with more than 35 years industry experience. Mr Doyle is a principal of

privately held CanPetro International Ltd and its affiliates. Mr. Doyle has served on a number of public company boards in Canada, and elsewhere,

including serving as Chairman of NYSE listed Equal Energy Inc.

• Mr Doyle was previously a principal and Chief Executive Officer of Petrel Robertson Ltd where he was responsible for providing advice and project

management to clients throughout the world. Prior to that, he held a variety of exploration positions at Dome Petroleum and Amoco Canada. 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 (Director)

• Mr 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 has lived

and worked in a number of countries including a year with BP Egypt. Mr Mitchell received his BSc Honours, Geology from the University of London 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 (Director)

• Mr Linacre is a Fellow of the Institute of Chartered Accountants in England and Wales and an experienced City practitioner. After qualifying with Deloitte

Haskins and Sells he spent 5 years with Hoare Govett before moving to Panmure Gordon in 1992, working at that firm for 20 years including 8 years as

CEO. Tim is currently CEO of Instinctif Partners, a leading Business Communications firm. During his career in 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 and private companies.

Amr Al Menhali (Director)

• Mr Al Menhali has a track record of over 20 years in senior leadership positions across a number of high-profile institutions, with expertise in strategy,

finance, risk, credit and corporate governance. He has also served on the boards of prominent regional and international companies in diverse 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 Al Menhali joined Waha Capital as Chief Executive Officer in September 2019.

Catherine Stalker (Director)

• Ms. Stalker is an experienced non-executive director and consultant to the boards of FTSE companies, public sector bodies, regulators, pension funds

and not-for-profits. She started her career at the Bank of England in 1991. From 1995-2007, she worked at PwC in Moscow and Berlin, heading the HR

consulting practice. She is currently a partner at Independent Audit Limited, a leading board evaluation firm with offices in London, Brussels and Dublin.

She sits on the boards of two subsidiaries of DTEK, a Dutch energy company with vertically integrated assets in Ukraine. She is also a non-executive

director on the Board of the Ukrainian retail bank, PUMB.

• Ms. Stalker holds an MSc from the LSE in International Political Economy and a BA (Hons) from Heriot Watt University in Russian and French.


26

• SDX plans to de-risk c.20 bcf of P50 prospective resource in Morocco, through appraisal and

development in H2 2021.

• SDX successfully sole-risked Sobhi, which will grow cash flow and NAV.

• SDX maintains a sharp focus on managing shareholders capital. Remaining capital program will only

consider the most capital efficient projects, e.g. reducing Morocco well programme on completion of

objectives and deploying capital to sole-risk Sobhi which has potential for near term cash generation.

• Business and organisational structure set up to maintain a low cost base.

NAV accretive growth

and shareholder returns

Focus on financial

discipline

• Sobhi discovery de-risks a number of other prospects around South Disouq including five prospects or

leads with a combined un-risked estimate of 96bcfe.

• Multiple discoveries in Morocco in the 2019/20 drilling campaign demonstrate additional running room in

an attractive operating environment.

High-impact upside

potential in existing

portfolio

• c.US$8.8 million cash (31/3/20) and US$7.5 million available under an undrawn EBRD credit facility.

• Majority of 2020 capital spend already complete. No further drilling having concluded successful

Egyptian and Moroccan well campaigns.

Strong liquidity position

entering a period of

planned lower capex

activity

A resilient business in a challenging environment

• SDX is materially cash-generative in a low oil price environment:

• Predominantly fixed-price gas-weighted portfolio with no linkage to oil price;

• Low-cost onshore operations: Opex @ $6/boe (2020);

• At $35/bbl, SDX forecasts post-tax operating cash flows to be > 90% gas-weighted in 2020 and 2021.

Defensive qualities and

downside oil-price

protection


27

Significant shareholders


28Listing of significant shareholders

ShareholderPercentage

holdings 1

SDX SPV Limited/Waha Capital 19.48%

Ingalls and Snyder 18.91%

River and Mercantile 9.82%

Hargreaves Lansdown AM 6.90%

Highclere Investors 5.02%

Mr Nikolaos D Monoyios 4.36%

Dr Valerie A Brackett 4.33%

Interactive Investor 3.99%

AXA Investment Managers SA 3.78%

Total holdings of shareholders > 3% holding 76.59% 2

(1) Percentage holdings as at 29 May 2020.

(2) Significant shareholder split 65.7% institutional and 10.89% retail as at 29 May 2020.


29

Appendix


30Q1 2020 financial results

Production growth, robust operating cash flow, capital discipline and good liquidity

Three months ended 31 March

(unaudited)

US$ million except per unit amounts 2020 2019

Net revenues 16.0 12.7

Netback (1) 12.1 9.3

Net realised average oil/service fees - US$/barrel 43.03 54.58

Net realised average Morocco gas price - US$/mcf 10.33 10.26

Netback – US$/boe 16.47 27.84

EBITDAX (1) (2) 11.1 7.8

Exploration & evaluation expense (“E&E”) (3) (4.8) (0.2)

Depletion, depreciation and amortisation (6.7) (5.9)

Total comprehensive (loss)/income (3.2) 0.1

Capital expenditure 15.5 13.0

Net cash generated from operating activities 6.3 7.0

Cash and cash equivalents 8.8 11.4

(1) Refer to the “Non-IFRS Measures” section of the release included on the companies website for details of Netback and EBITDAX.

(2) EBITDAX for Q1 2020 and 2019 includes US$2.1 million and US$1.0 million respectively of non-cash revenue relating to the grossing up of Egyptian

corporate tax on the North West Gemsa (both periods) and South Disouq (2020 only) PSCs which is paid by the Egyptian State on behalf of the Company.

(3) US$4.5 million of non-cash Exploration & Evaluation (“E&E”) write offs in total are included within this line items.


31Glossary

"bbl/d" barrels of oil per day

"bcf" billion cubic feet

"boe/d" barrels of oil equivalent per day

"Mcf" thousands of cubic feet

"MMbtu" millions of British thermal units

"MMscf/d" million standard cubic feet per day

"MMscfe/d" million standard cubic feet equivalent per day

"2P" proved plus probable reserves


32

Disclaimer

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 or inducement 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 2020 production and capex

guidance, liquidity and sources of cash flows in 2020 and 2021, the sufficiency of reserves to fulfill existing customer contracts, the impact of COVID-19 on

customer consumption, the Company's ability to increase its plateau production at South Disouq in Egypt, the cash generation potential of exploration and

development projects in Egypt and Morocco, the results of the upcoming well test at LMS-2 in Morocco and the potential success of future drilling campaigns,

extending the tenor and re-establishing the full availability of the US$10 million credit facility with the EBRD and future net revenue estimates 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 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 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.


33

Disclaimer

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 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.

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. The forward‐looking information contained herein is expressly qualified by this

cautionary statement.

Non-IFRS Measures

This news release contains the terms “Netback,” and “EBITDAX” which are not recognized measures under IFRS and may not be comparable to similar measures

presented by other issuers. The Company uses these measures to help evaluate its performance.

Netback is a non-IFRS measure that represents sales net of all operating expenses and government royalties. Management believes that netback is a useful

supplemental measure to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities prior to the

consideration of other income and expenses. Management considers netback an important measure as it demonstrates the Company’s profitability relative to current

commodity prices. Netback may not be comparable to similar measures used by other companies.

EBITDAX is a non-IFRS measure that represents earnings before interest, tax, depreciation, amortization, exploration expense and impairment. EBITDAX is

calculated by taking operating income/(loss) and adjusted for the add-back of depreciation and amortization, exploration expense and impairment of property, plant

and equipment (if applicable). EBITDAX is presented in order for the users of the financial statements to understand the cash profitability of the Company, which

excludes the impact of costs attributable to exploration activity, which tend to be one-off in nature, and the non-cash costs relating to depreciation, amortization and

impairments. EBITDAX may not be comparable to similar measures used by other companies.

Oil and Gas Advisory

Certain disclosures in this presentation constitute “anticipated results” for the purposes of National Instrument 51-101 – Standards of Disclosure for Oil and Gas

Activities (“NI 51-101”) 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

presentation 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 Company management 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.

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 1

bbl: 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.

.


34

Disclaimer

Prospective Resources Data

The prospective resources estimates disclosed or referenced herein have been prepared by Dr. Rob Cook, a qualified reserves evaluator, in accordance with the

Canadian Oil and Gas Evaluation Handbook and in accordance with NI 51-101. The prospective resources disclosed herein have an effective date of 1 June 2020.

Prospective resources are those quantities of gas, estimated as of the 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%.

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 risks 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

Future Net Revenue Estimates

The future net revenue estimates disclosed or referenced herein have been prepared by Dr. Rob Cook, a qualified reserves evaluator, in accordance with the

Canadian Oil and Gas Evaluation Handbook and in accordance with NI 51-101 and the requirements specified in Form 51-101F1. All evaluations of the present

value of estimated future net revenue are stated after provision for estimated future capital expenditures but prior to indirect costs and do not necessarily represent

the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained and variances could be material. There

are numerous uncertainties inherent in estimating quantities of reserves and the future cash flows attributed to such reserves. Estimates of reserves and future net

revenue for individual properties may not reflect the same level of confidence as estimates of reserves and future net revenue for all properties, due to the effect of

aggregation. The effective date of the future net revenue estimates disclosed or referenced herein is 1 June 2020.

SDX Energy Corporate Presentation 1 June 2020 · SDX ENERGY 4 FY 2020 US$28.2MM capital programme fully-funded from resilient cash flows, even under low oil prices, and strong liquidity

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