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  • WWW.SDXENERGY.COMSDX ENERGY

    1SDX Energy Corporate Presentation

    October 2020

  • WWW.SDXENERGY.COMSDX ENERGY

    2

    SDX Energy overview

    Company Overview 3

    2020 Guidance and Outlook 4

    Core Operated: South Disouq 6

    Core Operated: Morocco 10

    Core Non-Operated: West Gharib 13

    Non-Core: South Ramadan 15

    Valuation 17

    Upcoming Activity and Valuation Catalysts 19

    Exco and Board Bios 21 & 22

    SDX Summary 23

    Significant Shareholders 25

    Appendix - Last reported financials H1 2020 27

  • WWW.SDXENERGY.COMSDX ENERGY

    3Company overview

    Egypt: Three 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 eight concessions in Egypt and Morocco providing high-

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

    downside protection against lower oil prices.

    South Disouq exploration upside materially de-risked by the Sobhi discovery, with

    estimated prospective resource increasing to 233 bcf from 96 bcf. Potentially

    transformational drilling campaign targeted to commence in Q2/Q3’21.

    A strong platform to deliver US$102.4 million of value (independent 2P reserves

    NPV10 at 31/12/191). Portfolio also includes 2.6 MMboe of low-risk contingent

    resources. Market capitalisation of US$37MM as at 1/10/20.

    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. Low opex of $4.2/boe (H1’20).

    Morocco proposition enhanced by OYF and BMK discoveries confirming

    extension of core production area and a newly identified prospective horizon

    present throughout the core production and development area.

    Experienced management team focussed on optimising returns for shareholders

    with strong ESG engagement and through the recycling of capital into NAV-

    accretive growth projects. SDX continues to evaluate inorganic growth

    opportunities through M&A.

  • WWW.SDXENERGY.COMSDX ENERGY

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    Core production business performing well and ahead of guidance, with work programmes fully-funded from resilient cash flows, and a strong liquidity position

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

    • US$9.2 million of cash and US$7.5 million of additional liquidity from the undrawn EBRD credit facility as at 30 September 20202. Discussions are ongoing with EBRD to extend the length of the facility and to increase its size back to its original $10 million.

    • Together with cash generated from operations, the Company is fully funded for all of its planned activities in 2020 and 2021.

    • Majority of 2020 capex complete, with YTD capex of $21.9 million within FY guidance of $26.2 million. Company continues to exercise prudent capital discipline in evaluating its expenditure during the remainder of year.

    2020 guidance and outlook

    Asset

    Gross production Entitlement production (boe/d)

    Actual - 9 months

    ended 30 September

    20202

    Guidance - 12 months

    ended 31 December

    2020

    Actual - 9 months

    ended 30 September

    20202

    Guidance - 12 months

    ended 31 December

    2020

    Core assets

    South Disouq – WI1 55% 50.0 – 51.0 MMscfe/d 47.0 – 49.0 MMscfe/d 4,583 – 4,675 4,300 – 4,460

    West Gharib – WI 50% 3,300 – 3,325 bbl/d 3,200 – 3,300 bbl/d 629 – 634 610 – 630

    Morocco – WI 75% 5.7 – 5.8 MMscf/d 5.3 – 6.0 MMscf/d 713 – 725 663 – 750

    Non-Core assets

    NW Gemsa – WI 50% N/A – now disposed N/A – now disposed 513 385

    S Ramadan – WI 12.75% 390 – 400 bbl/d - 50 – 51 42

    Total 6,488 – 6,598 6,000 – 6,267

    2020 – Core production business performing well and ahead of guidance (1) WI = Working Interest; (2) all references to 30 September 2020 information in the presentation should be read as unaudited; (3) 9 months rate for 3 months to 31 March 2020, upon which the

    asset was disposed.

  • WWW.SDXENERGY.COMSDX ENERGY

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    Portfolio overview

    Core Operated: South Disouq 6

    Core Operated: Morocco 10

    Core Non-Operated: West Gharib 13

    Non-Core: South Ramadan 15

  • WWW.SDXENERGY.COMSDX ENERGY

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    Overview & current status

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

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

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

    • SDX retains 100% interest in Sobhi production following Partner decision not to participate in its development.

    • SDX share of production from South Disouq to increase 5 – 10% due to Sobhi coming onstream.

    • Gas price US$2.85/mcf, Opex estimated at < US$0.30/mcf, Government take c.51%, CO2 footprint optimised by using produced gas as fuel.

    Key near-term activity

    • Sobhi development and tie-in is underway with first gas on track for Q1

    2021, within one year of discovery, and facilitating extension of 50

    MMscfe/d plateau to mid-2023.

    • Material increase in low-risk prospective resource to 233 bcf across

    multiple, well-understood play types.

    • Potentially transformational drilling programme of at least two wells

    targeted to commence Q2/Q3’21.

    • Prospects are close to infrastructure, low cost to develop and have a

    short investment cycle to production.

    • Exciting areas of additional prospectivity continue to be evaluated.

    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.

    FY’20 Guidance YTD Actuals

    Production 47 - 49 MMscfe/d 50 - 51 MMscfe/d

    Capex US$10.7 million US$8.0 million

  • WWW.SDXENERGY.COMSDX ENERGY

    7 South Disouq exploration – 233 bcf of incremental

    prospective resource

    Existing fields (Abu Madi & KES)

    Abu Madi Fm prospect

    Qawasim Fm prospect

    Basal KES Fm prospect

    Shallow KES Fm prospect

    Sobhi

    Ibn Yunus

    South Disouq

    Shikabala North

    Shikabala

    Deep

    Shikabala

    Ibn Newton

    Newton

    Warda

    El Deeb

    Mohsen

    Hanut

    Primary South Disouq Prospects1

    Class EUR

    (bcf) CoS

    Hanut Prospect 139 33%

    Mohsen Prospect 26 51%

    El Deeb Prospect 22 29%

    Warda Prospect 14 35%

    Ibn Newton/

    Newton

    Dual-

    Prospect 16

    40-

    45%

    Shikabala

    cluster

    (requires two

    wells)

    Prospect 16 25-

    40%

    TOTAL 233

    (1) SDX Management estimates.

    High-impact drilling campaign commencing in Q2/Q3’21 with Hanut

  • WWW.SDXENERGY.COMSDX ENERGY

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    Existing fields (Abu Madi & KES)

    Abu Madi Fm prospect

    Qawasim Fm prospect

    Basal KES Fm prospect

    Shallow KES Fm prospect

    Shikabala

    Deep

    Ibn Newton

    Newton

    High-impact drilling campaign commencing in Q2/Q3’21 with Hanut

    Shikabala North Sobhi

    Ibn Yunus

    South Disouq

    Warda

    Hanut

    Mohsen

    El Deeb

    Hanut & Mohsen proposed extension

    • Approach made to EGAS and Ministry of

    Petroleum to extend the exploration period for

    a portion of the Concession.

    • Extension will secure prospects identified to the

    south of the existing South Disouq and Ibn

    Yunus Development Leases.

    • Terms agreed with EGAS and are pending

    Ministerial and Parliament ratification expected

    in H1’21.

    • Commitment to drill two wells within two years.

    Ibn Yunus North Development Lease

    • Ibn Yunus North Development Lease approved

    by EGAS, securing up to 25 year production

    term for Sobhi.

    • The Development Lease also secures the

    Shikabala, Shikabala North and Shikabala

    Deep prospects located to the west of Sobhi.

    • Drill-or-drop decision to drill one well within two

    and half years on these prospects, otherwise

    the western portion of the Development Lease

    is relinquished.

    Ibn Yunus North

    Development Lease

    South Disouq & Ibn Yunus

    Development Lease

    Hanut/Mohsen

    licence extension

    Shikabala

    South Disouq exploration – 233 bcf of incremental prospective resource

  • WWW.SDXENERGY.COMSDX ENERGY

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