sdx energy corporate presentation 1 october 2020...sdx energy 4 core production business performing...

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1SDX Energy Corporate Presentation

October 2020


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


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.


4

Core production business performing well and ahead of guidance, with work programmes fully-funded from resilient cashflows, 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 30September 20202. Discussions are ongoing with EBRD to extend the length of the facility and to increase its size backto its original $10 million.

• Together with cash generated from operations, the Company is fully funded for all of its planned activities in 2020 and2021.

• Majority of 2020 capex complete, with YTD capex of $21.9 million within FY guidance of $26.2 million. Companycontinues 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.


5

Portfolio overview

Core Operated: South Disouq 6

Core Operated: Morocco 10

Core Non-Operated: West Gharib 13

Non-Core: South Ramadan 15


6

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 Partnerdecision not to participate in its development.

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

• Gas price US$2.85/mcf, Opex estimated at < US$0.30/mcf, Governmenttake 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


7South 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

ClassEUR

(bcf)CoS

Hanut Prospect 139 33%

Mohsen Prospect 26 51%

El Deeb Prospect 22 29%

Warda Prospect 14 35%

Ibn Newton/

Newton

Dual-

Prospect16

40-

45%

Shikabala

cluster

(requires two

wells)

Prospect 1625-

40%

TOTAL 233

(1) SDX Management estimates.

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


8

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


9

0

2,000

4,000

6,000

8,000

Avera

ge D

aily

Pro

duction,

boe

South Disouq Development and Mohsen & Hanut Exploration Success Forecast (Gross)

SD+IY Sobhi Mohsen Hanut

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

• Gross plateau production is maintained at ~50 MMscfe/d

(8,333boe/d) until mid-2023 with the development of the 24

bcf1 Sobhi discovery.

• Sobhi will generate an estimated US$25MM1 of undiscounted

post-tax cash flow after capex to SDX, equivalent to

US$1.05/mcf.

• 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.

• The Mohsen prospect is 26 bcf and would extend the plateau

of ~50 MMscfe/d (8,333boe/d) to mid-2024.

• Hanut is a much larger prospect with estimated prospective

resource of 139 bcf and success would be transformational

by extending the plateau to the next decade. Level of

success will influence development options to increase CPF

capacity and expedite this production.

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

Incremental production potential with no associated additional facilities capex(1) SDX Management estimates.

0

2,000

4,000

6,000

8,000

Avera

ge D

aily

Pro

duction,

boe

South Disouq Development and Mohsen Exploration Success Forecast (Gross)

SD+IY Sobhi Mohsen


10


• Growing, low-cost gas production, sold at attractiveprices to diverse (eight) customers, with low paymentrisk.

• 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 recent discoveries demonstrateadditional running room in the Gharb Basin.

• Morocco customers have returned to 90% of theirMarch 2020 pre-closure consumption levels.

• SDX Morocco creating an annual c.60k tonne reductionin CO2 emissions by switching customers to cleanerfuel.


• Accelerate a drilling campaign to H1’21 to appraise OYFand BMK areas following successful drilling in 2019/20campaign and target a newly identified prospectivehorizon below existing core production area.

• Testing of LMS-2 discovery, to de-risk this largestructure and follow on potential, will coincide withcommencement of the 2021 drilling campaign,optimising equipment and personnel mobilisation costs.

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 31 March 2020

Guidance

Update

FY’20

GuidanceYTD Actuals

Gross Production 5.3 - 6.0 MMscf/d 5.7 - 5.8 MMscf/d

Capex US$13.5MM US$13.2MM

Attractive fiscal regime and robust gas-sales prices


11

Beni Malek [BMK] cluster9 prospects

Aggregate p50 Resource: ~8.8 bcf*

COS: 65~75%-

6 leads currently under review.

Oulad Youssef [OYF] clusterOYF-2 discovery p50 vol: 1.6 bcf

-2 prospects remaining

Aggregate p50 Resource:~1.1 bcf*

COS: 80%+

Safsaf [SSF] cluster3 prospects remaining


COS: 55~65%-

Similar, shallower play type to BMK area. >10 leads currently under

review.

R’mel Guebbas [RML] cluster

3 prospects remainingAggregate p50 Resource:

~1.4 bcf*COS: 50~60%

ONHYM Acreage

Oulad Merah [OLM] cluster4 prospects remaining


COS: 55~65%-

Shallower targets than BMK, historic discoveries in adjacent

ONHYM held acreage.

8” line termination

(KSR Station)

(*) volumes effective as of 30 September 2020

• The successful wells at BMK-1 and OYF-2 drilled Q1’20 have extended the existing production and development area to the north.

• Running room demonstrated by de-risking in excess of 18 bcf1 (Mean unrisked) in larger accumulations.

• Seeking to accelerate a four well campaign to H1’21 that will develop the potential of the OYF area, confirm the potential of the extension to the core area and potentially test the Top Nappe concept discussed on following slide.

• Future discoveries will allow SDX to incrementally expand its infrastructure so that future connection costs are managed.

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

OYF/BMK Future Exploration - c.20 bcf of follow on de-risked prospectivity identified

2021 drilling to develop the de-risked potential(1) SDX Management estimates

BMK


12Morocco New Exploration Potential – Top Nappe

Promising new potential being matured towards a drilling decision

Top Nappe exploration potential is present throughout, having been identified by SDX

in the Lalla Mimouna Nord area and identified on seismic as a play near to

infrastructure

Opportunity Summary

• LMS-2 encountered gas at a target level in

sediments at the top of a faulted high on top of

the Gharb Basin Nappe, which will be tested

upon commencement of the H1’21 drilling

campaign.

• Testing will de-risk this Top Nappe prospectivity,

which further evaluation of LMS-2 and a re-

interpretation of existing 3D seismic has

highlighted to be present throughout the

acreage, including in the core development

areas which are close to infrastructure.

• SDX is evaluating options for a dual target well

to penetrate a shallower biogenic target and

deeper top Nappe formation as part of the 2021

drilling campaign.

• If successful, this dual target well has the

potential to prove the top Nappe concept and

increase the likelihood of commercialisation of

significant resource volumes located close to

infrastructure with low tie-in costs.

Top Nappe

exploration potential

is present

throughout SDX

acreage


13

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Avera

ge D

aily

Pro

duction,

boe

West Gharib 2P + 2C Forecast (Gross)

West Gharib 2C

West Gharib 2P


• 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.

• Low breakeven Brent oil price of c.$20/bbl.


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

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.

(1) 2019 independent CPR.

(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 YTD Actuals

Gross Production3,200 - 3,300

bbl/d

3,300 - 3,325

bbl/d

Capex US$2.0 million US$0.7 million

Production growth potential at low cost

2P1


2C1

West Gharib (Meseda and Rabul Fields) – cash-generative assets with significant contingent upside


14West Gharib infill drilling to unlock significant contingent

upside• 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 3 to 4 water

injector wells) for a gross cost of approximately

US$8-10 million (SDX: US$4-5 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 an

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

undiscounted post-tax, post-capex cash flow net

to SDX.

• A licence extension beyond the end of 2021 is

being sought to facilitate the incremental drilling

activity that is proposed by the Operator.

• Drilling will start in 2021 with two-three wells,

increasing to three-four wells per year

thereafter.

• SDX has identified ~12 MMbbl gross mean of

prospective recoverable resources for potential

future exploration drilling.

- Existing producing well

- Agreed targets to drill in 2021

- Tier1 targets to drill in 2022-2023

Running room at West Gharib 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.


15


• 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.

• Further 1.2 MMbbls of 2C is in the deeper MatullaFormation.

• SRM-3ST came on-line 17 April 2020 and, after an acid wash in May 2020, is currently (September 2020) producing at a stable rate of ~680 bbl/d (gross).

• Additional CAPEX on working-over the SRM-2 well has been deferred due to low oil price.

• 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 ~680bopd (gross)


16

Valuation


17Valuation

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 14.6p/sh trade at an operating cash flow (2019) multiple of 1.5x.

(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) 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 (1/10/20) 37.0

Net cash (30/09/20 - unaudited) 9.2

Liquidity (31/03/20)

(cash $9.2 million plus EBRD $7.5 million undrawn facility - unaudited)16.7


18

Upcoming activity & value

catalysts


19

SOUTH DISOUQ

MOROCCO

WEST GHARIB

Salah - uneconomic volumes

Sobhi discovery - est. 24 bcf recoverable

8 from 10 wells successful

Online - 300boe/d

At least two exp. wells: Hanut & Mohsen

One well: IY-2 drill & tie-in

One exp. well: Warda

Four wells: OYF/BMK development & appraisal

Two to three wells

First exploration well

Second exploration well

Sobhi tie in

South Disouq compression

Exp drilling (Hanut, Mohsen)

IY-2 drilling & tie-in

Exp drilling (Warda)

Ten-well drilling campaign

LMS-2 well test

Development & appraisal drilling

Rabul-3 drilling

Meseda-20 drilling

2C infill drilling ('21)

Meseda-17 drilling

2C infill drilling ('22)

Complete

Budgeted

Contingent

2020-22 Activities and Value Catalysts1

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

Key upcoming catalysts

• Q1’21 Sobhi well comes on stream.

• Q2/Q3’21 potentially transformational drilling campaign in South Disouq, targeting total 165 bcf2.

• H1’21 LMS-2 well test in Morocco at the start of the H1’21 drilling campaign.

• H1’21 Morocco drilling to develop and confirm the potential of the northern extension to the core area.

• H1’21 West Gharib drilling campaign commences comprising of 8-10 development wells over three

years to convert 2.3 MMbbls (W.I.) of contingent resources to 2P reserves and increase production.

(1) Includes all budgeted and contingent capex elements; (2) Management estimates for Hanut and Mohsen prospects.

2020 2021 2022


20

Executive Committee and Board

of Directors profiles


21

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


22Chairman 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.


23

• SDX Egypt CO2 footprint optimised by using produced gas as fuel in running the CPF at South Disouq.

• SDX Morocco creating c.60k tonne annual reduction in CO2 emissions by switching customers to

cleaner fuel.

• Establishing an ESG policy and objectives that support the company’s strategic plan.

• Sobhi discovery de-risks several other prospects around South Disouq, driving an increase in estimated

prospective resource to 233 bcf from 96 bcf. High-impact drilling campaign to commence in Q2/Q3’21.

• Morocco proposition enhanced by the OYF and BMK discoveries extending the existing production area

and by Top Nappe exploration potential, identified as a play close to infrastructure.

ESG agenda

Transformational upside

potential in existing

portfolio

• SDX maintains a sharp focus on managing shareholders capital and on optimising returns for

shareholders through recycling capital into NAV-accretive, growth projects. SDX continues to evaluate

inorganic growth opportunities through M&A.

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

Focus on financial

discipline

• US$9.2 million cash (30/9/20) 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.

• Together with cash generated from operations, the Company is fully funded for all of its planned

activities in 2020 and 2021.

Strong liquidity position

and fully funded

A resilient business with transformational upside

• 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 @ $4.2/boe (H1’20);

• 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


24

Significant shareholders


25Listing of significant shareholders

ShareholderPercentage

holdings

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%1

(1) Significant shareholder split 65.7% institutional and 10.89% retail.


26

Appendix


27H1 2020 Financial Results

Six months ended 30 June

(unaudited)

US$ million except per unit amounts 2020 2019

Net revenues 22.0 15.5

Netback (1) 17.2 12.5

Net realised average oil service fees – US$/barrel 30.18 50.57

Net realised average Morocco gas price – US$/mcf 10.35 10.28

Net realised average South Disouq gas price – US$/mcf 2.85 -

Netback – US$/boe 15.25 43.98

EBITDAX (1) (2) 15.3 9.3

Exploration & evaluation expense (“E&E”) (3) (5.1) (0.6)

Depletion, depreciation and amortisation (12.0) (7.9)

Profit/(loss) from discontinued operations 1.1 (0.1)

Total comprehensive loss (4.0) (0.4)

Capital expenditure 19.4 21.8

Net cash generated from operating activities (4) 10.0 4.3

Cash and cash equivalents 9.3 11.2

(1) Refer to the “Non-IFRS Measures” section of this release below for details of Netback and EBITDAX.

(2) (EBITDAX for H1 2020 includes US$2.7 million of non-cash revenue relating to the grossing up of Egyptian corporate tax on the South Disouq PSC 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.

(4) Excludes discontinued operations.

As required by IFRS, the table below reflects the results from the North West Gemsa concession, which was held

for sale as at 30 June 2020, as a discontinued operation. All revenues, costs and taxation from this asset have

been consolidated into a single line item “profit/(loss) from discontinued operations” in both periods reported. Per

unit metrics do not include North West Gemsa.


28Glossary

"bbl" stock tank barrel

"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


29

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.


30

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.

.


31

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.

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