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
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.
WWW.SDXENERGY.COMSDX ENERGY
5
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
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
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
10
Overview & current status
• 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$0.9/mcf, generating high netbacks.
• Favourable fiscal regime, including 10-year tax holiday.
• SDX owns 75% of, and operates, pipeline infrastructuredirect to customers.
• OYF-2 and BMK-1 recent discoveries demonstrateadditional running room in the Gharb Basin.
• Morocco customers have returned to 90% of theirMarch 2020 pre-closure consumption levels.
• SDX Morocco creating an annual c.60k tonne reductionin CO2 emissions by switching customers to cleanerfuel.
Key near-term activity
• Accelerate a drilling campaign to H1’21 to appraise OYFand BMK areas following successful drilling in 2019/20campaign and target a newly identified prospectivehorizon below existing core production area.
• Testing of LMS-2 discovery, to de-risk this largestructure and follow on potential, will coincide withcommencement of the 2021 drilling campaign,optimising equipment and personnel mobilisation costs.
Morocco overview
Morocco Licence Interests
SDX working interest 75%, Operator
Partner ONHYM (25%)
Reserves & valuation 31/12/191 31/3/202
2P Reserves 4.5 bcf W.I. 6.0 bcf W.I.
NPV10 US$ 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
WWW.SDXENERGY.COMSDX ENERGY
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
Aggregate p50 Resource: ~2.9 bcf*
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
Aggregate p50 Resource: ~3.8 bcf*
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
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
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
Overview & current status
• 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.
Key near-term activity
• 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
(1) 2019 independent CPR.
2C1
West Gharib (Meseda and Rabul Fields) – cash-generative assets with significant contingent upside
WWW.SDXENERGY.COMSDX ENERGY
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
(1) 2019 independent CPR.
(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$2.80/bbl.
WWW.SDXENERGY.COMSDX ENERGY
15
Overview & current status
• Situated in the Gulf of Suez.
• Light oil produced from stacked reservoirs (Thebes to Matulla Formations).
• P50 discovered volumes: c.1.5 MMbbls oil (gross) for Thebes, Brown Limestone, Sudr reservoirs combined.
• Further 1.2 MMbbls of 2C is in the deeper MatullaFormation.
• SRM-3ST came on-line 17 April 2020 and, after an acid wash in May 2020, is currently (September 2020) producing at a stable rate of ~680 bbl/d (gross).
• Additional CAPEX on working-over the SRM-2 well has been deferred due to low oil price.
• Non-core asset and SDX is seeking to exit the position.
Non-Core Asset: Egypt – South Ramadan
South Ramadan licence interest
SDX working interest 12.75%
PartnerPICO (37.5%, Operator), GPC
(50%)
Reserves1 0.19 MMbbls W.I.
Contingent Resouces2 0.15 MMbbls W.I.
(1) 2019 independent CPR.
(2) Requires an additional well.
South Ramadan online and producing ~680bopd (gross)
WWW.SDXENERGY.COMSDX ENERGY
16
Valuation
WWW.SDXENERGY.COMSDX ENERGY
17Valuation
Given SDX’s resilience to low oil prices, the Group’s market cap reflects a materially undervalued position
compared to its underlying asset base indicated by the independent 2P reserves valuation.
• Shares at 14.6p/sh trade at an operating cash flow (2019) multiple of 1.5x.
(1) The Company’s Forms 51-101 F1, F2 and F3, including details of oil price assumptions, are available on SEDAR. 51-101 forms relate to oil and gas activities and include
audited reserves evaluation. SDX is a Designated Foreign Issuer within the meaning of the Canadian National Instrument 71-102-Continuous Disclosure and Other
Exemptions Relating to Foreign Issuers.
(2) Based on Independent 2P reserves valuation and adjusts for lower Brent oil price assumption only.
Summary valuation / liquidity information US$ 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
WWW.SDXENERGY.COMSDX ENERGY
18
Upcoming activity & value
catalysts
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
20
Executive Committee and Board
of Directors profiles
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
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.
WWW.SDXENERGY.COMSDX ENERGY
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 $35/bbl, SDX forecasts post-tax operating cash flows to be > 90% gas-weighted in 2020 and 2021.
Defensive qualities and
downside oil-price
protection
WWW.SDXENERGY.COMSDX ENERGY
24
Significant shareholders
WWW.SDXENERGY.COMSDX ENERGY
25Listing of significant shareholders
ShareholderPercentage
holdings
SDX SPV Limited/Waha Capital 19.48%
Ingalls and Snyder 18.91%
River and Mercantile 9.82%
Hargreaves Lansdown AM 6.90%
Highclere Investors 5.02%
Mr Nikolaos D Monoyios 4.36%
Dr Valerie A Brackett 4.33%
Interactive Investor 3.99%
AXA Investment Managers SA 3.78%
Total holdings of shareholders > 3% holding 76.59%1
(1) Significant shareholder split 65.7% institutional and 10.89% retail.
WWW.SDXENERGY.COMSDX ENERGY
26
Appendix
WWW.SDXENERGY.COMSDX ENERGY
27H1 2020 Financial Results
Six months ended 30 June
(unaudited)
US$ 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.
WWW.SDXENERGY.COMSDX ENERGY
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
WWW.SDXENERGY.COMSDX ENERGY
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.
WWW.SDXENERGY.COMSDX ENERGY
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.
.
WWW.SDXENERGY.COMSDX ENERGY
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.