CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy

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CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
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                  CORPORATE
                  PRESENTATION
                  Januar y 2020

Creating a better world for all
our stakeholders
    SDX ENERGY                    WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
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             SDX overview:

             •   Company overview                                          3

             •   2019 highlights and 2020 guidance                         4
             •   Portfolio - asset overviews                               5
             •   Valuation & share price performance                       18

             •   Upcoming activity and catalysts                           20

             •   Exco profiles                                             23

             •   Board of Directors profiles                               24

             Appendix:
             •   YTD Financial results                                     26

             •   Listing of significant shareholders                       27

SDX ENERGY                                             WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
SDX ENERGY                                                                         3
                                                      COMPANY OVERVIEW
      • AIM-listed E&P with nine concessions in Egypt and Morocco providing high margin production and high impact exploration in
        stable locations with improving macro-economic outlooks and attractive fiscal terms.

      • Independent CPR 2P reserves valuation (NPV[10] at 31/12/18)1 of US$94 million. Market capitalisation of $69 million as at
        17/01/2020.

      • 13.1 MMboe net 2P reserves at 31/12/181 c.50/50 oil/gas. Currently c.25/75 oil/gas with South Disouq coming on stream during
        Q4’19. Gas businesses are underpinned by fixed-price, long-term sales contracts.

      • Delivering on other operational milestones across the portfolio, with high impact exploration drilling underway in Morocco and
        planned to commence in Egypt during Q1’20. Eight wells in total expected to complete in H1’20.

      • Will continue to actively manage portfolio to optimise returns for shareholders and recycle capital into growth projects. SDX
        continues to evaluate inorganic growth opportunities through M&A.
                                     Egypt: Four concessions                          Morocco: Five concessions

        SDX ENERGY                                                                                                      WWW.SDXENERGY.COM
1: 2018 independent CPR available on SDX Energy website.
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
SDX ENERGY                                                                                                                                                           4
                          2019 Highlights and 2020 Guidance
• 2019 annual production of 4,020 boe/d (net), 2020 guidance set at 6,750 – 7,000 boe/d (net):

                                                                                                2020
                                                                     2019 Actual                                     2019 Actual            2020 Capex
                                                                                             Production
                                         Asset                       production                                         capex                guidance
                                                                                              guidance
                                                                       (boe/d)                                          (US$)                 (US$)
                                                                                               (boe/d)

                         Core assets
                         South Disouq – WI 55% &
                                                                           630              4,300 – 4,460              20.2 million           6.5 million
                         operator
                         Meseda – WI 50%                                   790                610 – 630                1.5 million            2.0 million

                         Morocco – WI 75% & operator                       800                840 – 860                16.1 million          15.0 million

                         Non-core assets
                         NW Gemsa – WI 50%                                1,800             1,000 – 1,0501             1.3 million            2.0 million
                         South Ramadan – WI 12.75%                           -                      -                  1.6 million                  -

                         Total                                           4,020             6,750 – 7,000              40.7 million          25.5 million

• Full year 2019 capex of US$40.7m (unaudited) and 2020 capex guidance set at US$25.5m.
• All planned future activities fully funded from cash flows, US$11m cash (unaudited) and US$7.5m undrawn credit facility as at
  31/12/19. 9 months to 30/09/19 EBITDAX of US$23m and operating cash flow of US$18m.
• Low cost existing production base with opex at c.$11/boe2, expected to reduce materially with addition of South Disouq production.

• CEO of Waha Capital, SDX’s largest shareholder, appointed to Board on 19 November 2019.

1: The Company may exit the NW Gemsa concession during the year if sufficient cost savings cannot be achieved by the operator.
2: $11/boe based on reported production for the nine months to 30/9/19, reflecting entitlement volumes for Meseda & Rabul. When reflecting operations and working interest volumes for Meseda & Rabul,
opex/boe drops to $8/boe.
 SDX ENERGY                                                                                                                                                             WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
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 PORTFOLIO

SDX ENERGY   WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
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                   Maximising value across the exploration &
                             production life cycle

          EGYPT

FOUR CONCESSIONS

CORE ASSETS:
• South Disouq
• West Gharib

   SDX ENERGY                                   WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
ASSET OVERVIEW                                                7
                                                           SOUTH DISOUQ (1/4)
Current status
• First gas milestone was achieved in Q4’19, on time and on budget.        South Disouq licence interests
• Production ramp up exceeded expectations with plateau production
  of 50 MMcfe/d (8,333 boe/d) achieved mid-December 2019, three            SDX working interest     55%, Operator
  months earlier than anticipated.
                                                                           Partner                  IPR (45%)
• 89 bcfe gross of 2P reserves (49 bcfe net to SDX) as per 30/09/19
  independent CPR1.                                                        2P Reserves1             49.0 bcfe W.I.
• Gas price US$2.85/mcf, Opex estimated at < US$0.30/mcf,
  Government take c.51%.                                                              South Disouq licence map
• Exploration campaign planned to commence Q1’20.

Key near-term activity
• Two well exploration campaign planned to commence Q1’20. Total
  P50 unrisked prospective resources estimated at gross 103 bcfe
  (17 MMboe), (57 bcfe (9 MMboe) net to SDX).

• Depending on partnering discussions, a third South Disouq well
  targeting deeper prospectivity in a potential new play fairway may
  be drilled later in 2020.

2020 guidance
• Production: Guidance production rate of 47 – 49 MMscfe/d
  reflects a continuation of the 50 MMcfe/d current production rate
  adjusted for CPF expected uptime/availability during the year
• Capex: US$12.0 million gross (US$6.5 million net) predominantly
  related to two exploration wells, with minor sustaining facilities
  capex.
   SDX ENERGY                                                                                         WWW.SDXENERGY.COM
1: 30/09/19 South Disouq independent CPR available on SDX Energy website
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
ASSET OVERVIEW                                                                                                    8
         SOUTH DISOUQ DEVELOPMENT PROJECT (2/4)
•   First gas achieved in Q4’19, with all four discovery wells hooked up and producing at their expected rates of between 8 MMscf/d and 15
    MMscf/d.
•   Production ramp up exceeded expectations with plateau production of 50 MMcfe/d achieved by mid-December, three months earlier
    than anticipated, and on budget.

      SDX ENERGY                                                                                               WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
ASSET OVERVIEW                                                                                               9
    SOUTH DISOUQ DEVELOPMENT PROJECT (3/4)
                           South Disouq development map and schematic

Simple process:
•   Gather the produced gas to the inlet manifold;
•   Separate condensate and water from gas and truck away condensate for sale and water for treatment;
•   Compress gas to export line pressure and flow gas to metering station and export to the Grid via a 10km 12” pipeline.
SDX ENERGY                                                                                              WWW.SDXENERGY.COM
CORPORATE PRESENTATION - Januar y 2020 - Creating a better world for all our stakeholders - SDX Energy
ASSET OVERVIEW                                                                                     10
SIGNIFICANT EXPLORATION POTENTIAL (4/4)
             South Disouq licence map
                                        •     c.300 bcfe of unrisked prospective resources in four
                                              prospects.

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

                                        •     Drilling campaign to commence Q1’20 with Salah,
                                              followed by Sobhi. If successful, low-cost tie in to
                                              existing CPF will generate attractive returns.

                                        •     Warda is located within the existing South Disouq
                                              development lease and will be drilled at a later date
                                              to maintain the plateau production rate.

                                        •     Young prospect may be drilled later in 2020 subject
                                              to successful partnering discussions.

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

                                                                        EUR bcfe
                                                      Prospect                             GCos
                                                                       (unrisked)
                                                                          P501
                                                        Salah2            70.6              35%
                                                        Sobhi             32.7              35%
                                                        Warda             14.4              35%
                                                        Young3           185.0              17%
                                                   Total (unrisked)      302.7

                                        1: SDX Management estimates
SDX ENERGY                                                                                WWW.SDXENERGY.COM
                                        2: Salah reflects the P50 EUR for three horizons and the CoS of one
                                        3: Young reflects the P50 EUR for four horizons and the CoS of one
ASSET OVERVIEW                                                                                              11
            WEST GHARIB (MESEDA AND RABUL FIELDS)
                                                                                      Meseda & Rabul licence map
    Current status
    •      Regular appraisal/development wells to generate stable production
           from a well-understood asset.
    •      2019 production: 4,180 bbl/d (gross)/790 bbl/d (net).

    2020 guidance
    •      Production: 3,200 - 3,300 bbl/d average (gross).
    •      Capex: US$4.0 million (gross) (US$2.0 million net) for up to three
           appraisal/development wells, workovers and reservoir studies.

         Meseda & Rabul licence interests
         SDX working interest                 50% (19.06% entitlement)              Meseda & Rabul sales history
         Partner/Operator                     Dublin International (50%)
                                                                                Rabul-2   Rabul-4   MSD-16     MSD-15   Rabul-7   MSD-19
         2P Reserves1                         4.56 MMbbl W.I./1.74 MMbbl N.E.               &
                                                                                          Rabul-5

   SDX ENERGY                                                                                                WWW.SDXENERGY.COM
1: 2018 independent CPR available on SEDAR.
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                     Maximising value across the exploration &
                               production life cycle

          EGYPT

FOUR CONCESSIONS

NON-CORE ASSETS:
• North West Gemsa
• South Ramadan

   SDX ENERGY                                     WWW.SDXENERGY.COM
ASSET OVERVIEW                                            13
                                              NORTH WEST GEMSA
          Current status
          •   Late-life asset with increasing water cut and declining   NW Gemsa licence map
              production.
          •   The Company may exit during 2020 if sufficient cost
              savings cannot be achieved by the operator. Egyptian
              State liable for any decommissioning.
          •   2019 production: 3,600 boe/d (gross)/1,800 boe/d (net).

          2020 guidance
          •  Production: 2,000 - 2,100 boe/d (gross).
          •  Capex: US$4.0 million (gross) (US$2.0 million net) for
             ten workovers.

                      NW Gemsa licence interests                        NW Gemsa sales history
                      SDX working interest    50%
                                                                          AASE-25   AASE-27   Ola-4
                      Partner                 NPIC (50%, Operator)
                      2P Reserves1            1.64 MMboe W.I.

             SDX ENERGY                                                              WWW.SDXENERGY.COM
1: 2018 independent CPR available on SEDAR.
ASSET OVERVIEW                                              14
                                                SOUTH RAMADAN                  South Ramadan map
            Current status
            •   Drilled SRM-3 as a deviated well from the existing SRM-
                2 platform.
            •   P50 discovered volumes: c.1 MMbbls oil (gross) for
                Thebes, Brown Limestone, Sudr reservoirs combined.
            •   Based on SRM-2 historical production, SRM-3 is
                anticipated to come on-line at around gross 1,300 bopd
                with an annual decline rate of 30-35%.
            •   Non-core asset and SDX is seeking to exit the position.

                         South Ramadan licence interest
                         SDX working interest        12.75%
                                                     PICO (37.5%, Operator),
                         Partner
                                                     GPC (50%)
                         Reserves1                   0.1275 MMbbls W.I.

             SDX ENERGY                                                                 WWW.SDXENERGY.COM
1: SDX Management estimates.
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                   High margin gas with transformational exploration
                                       potential

MOROCCO – GHARB
     BASIN

FIVE CONCESSIONS

  SDX ENERGY                                        WWW.SDXENERGY.COM
ASSET OVERVIEW                                                                        16

Current status
                                                 MOROCCO (1/2)
•     Growing, low-cost gas production, sold at attractive prices to diverse (eight)
      customers, with low payment risk.                                                    Morocco Licence Interests
•     2019 production: 6.4 MMcf/d (gross)/4.6 MMcf/d (net).                                SDX working interest   75%, Operator
•     Average gas price US$10-US$11/mcf, with opex estimated at US$0.7/mcf,
      generating high netbacks.
                                                                                           Partner                ONHYM (25%)
•     During the second half of 2019, all customers achieved expected consumption          2P Reserves2           4.2 bcf W.I.
      rates.
•     Favourable fiscal regime, including 10-year tax holiday from first production.
                                                                                          Morocco licence map (Five Concessions)
•     SDX owns 75% of, and operates, pipeline infrastructure direct to customers.

Key near-term activity
•     12-well campaign is underway and expected to complete in Q1’20. Five of the
      first seven wells are commercial successes, adding 2.0 – 2.5 bcf1 of gas to
      existing gross reserves of 4.0 – 5.0 bcf1. These reserves are estimated to fulfil
      existing customer contracts for the next two-and-a-half to three years.
•     Campaign designed to target reserves required under existing customer
      contracts and to test new play opening areas across the portfolio that could
      grow and transform SDX’s Moroccan business.

2020 guidance
•     Production: 6.7 - 6.9 MMcf/d average sales (gross) assuming no new
      customers but growth in expected demand from existing customers.
•     Capex: US$15.0 million (net) primarily relating to the completion of the
      Morocco 12 well drilling campaign.

    SDXManagement
1: SDX    ENERGYestimates.                                                                                        WWW.SDXENERGY.COM
2. 2018 independent CPR available on SEDAR.
ASSET OVERVIEW                                                                     17
             MOROCCO 12-WELL DRILLING PROGRAMME (2/2)
                                                                           Morocco prospect map
•      Twelve well drilling programme is underway and targeting 15
       bcf (gross unrisked mean prospective resources1) across a
       diverse set of opportunities:
         o       Eight lower risk biogenic gas targets located near
                 existing infrastructure in Gharb Centre;
         o       Two moderate risk wells, a step out exploration well in
                 the Beni Malek (BMK-1) cluster area, with good follow-
                 on potential, and, a moderate risk prospect at OYF-2
                 with good volume potential. Prospects here are
                 lookalikes to previous discoveries in Sebou production
                 area;
         o       Up to two higher risk exploration prospects at Lalla
                 Mimouna re-testing the Lalla Mimouna thermogenic
                 gas play at LNB-2 and LMS-2.
•      Wells in Lalla Mimouna, OYF-2 and BMK-1 are play opening
       and could transform the growth of SDX’s Moroccan
       business.
•      Target to drill, complete and connect wells for an average
       cost of c.US$2.0 million per well.
•      2018 independent CPR1 identified prospect inventory in
       excess of 100 bcf (gross unrisked mean prospective
       resources).

            SDX ENERGY                                                                 WWW.SDXENERGY.COM
    1: 2018 independent CPR available on SEDAR.
18

VALUATION AND
  SHARE PRICE
 PERFORMANCE

 SDX ENERGY     WWW.SDXENERGY.COM
19
                               SDX ENERGY
                  VALUATION & SHARE PRICE PERFORMANCE
                                                                                                                         SDX Energy share price (p/share) vs. AIM O&G Index (re-based)
                                                                                                                                       & Brent (re-based) since 1/1/18
                                                                                                               80
            Summary valuation / liquidity information
     Independent 2P reserves                                                                                   70
     valuation (NPV[10] at                                                 $94 million
     31/12/18)1                                                                                                60

     Market cap (17/01/20)                                                 $69 million                         50

                                                                                                                                  Half Year results and
     Net cash (31/12/19) 2                                                 $11 million                         40              positive update on progress                                        South Disouq reserves
                                                                                                                                    with South Disouq                                                    upgrade
                                                                                                                                       development
     Liquidity (31/12/19) 2                                                                                    30
     (cash $11 million plus EBRD
                                                                        $18.5 million3
     $7.5 million undrawn credit                                                                               20
     facility)
                                                                                                               10

                                                                                                                                                SDX Energy               AIM O&G               Brent

1: 2018 independent CPR available on SEDAR.
2: Unaudited figures as at 31/12/19. Reported cash position and liquidity position were $11 million and $23 million respectively as at 30/9/19.
3: Availability of EBRD credit facility reduced by US$2.5 million from reported figure of US$10.0 million as at 30/09/2019 in line with its amortisation schedule. Discussions with EBRD have commenced to extend tenor and re-
establish US$10 million availability.
         SDX ENERGY                                                                                                                                                                  WWW.SDXENERGY.COM
20

UPCOMING ACTIVITY
   AND VALUE
    CATALYSTS

  SDX ENERGY        WWW.SDXENERGY.COM
SDX ENERGY                                                                                                        21
       UPCOMING ACTIVITY AND VALUE CATALYSTS
Material upcoming catalysts in next 12 months
• South Disouq (55% share) plateau production of 50 MMscfe/d (gross) at $2.85/mcf from Q4’19. Opex is estimated at < US$0.30/mcf.
• Completion of twelve well drilling campaign that is currently underway in Morocco, targeting 15 bcf of unrisked prospective resources.
  Gas is sold at average price of $10-$11/mcf and opex is estimated at US$0.7/mcf.
• Young exploration well in South Disouq to be drilled pending completion of partner discussions. c.300 bcfe of prospective resources
  in four targets.

    SDX ENERGY                                                                                                 WWW.SDXENERGY.COM
22

    EXECUTIVE
 COMMITTEE AND
    BOARD OF
DIRECTORS PROFILES

   SDX ENERGY        WWW.SDXENERGY.COM
SDX ENERGY                                                                                                   23
                                             EXECUTIVE COMMITTEE
                              Exco established June 2019 to ensure delivery of key projects
Mark Reid (CEO)
Held board positions in E&P sector for 11 years. Formerly CFO of Aurelian Oil & Gas PLC and Chariot Oil & Gas PLC. Significant M&A and equity and debt capital
markets experience. 14 years corporate finance and banking experience, 7 years as an Emerging Market E&P banker, Head of Oil and Gas at BNP Paribas
Fortis, London and Director at Ernst & Young Corporate Finance, London.

Nick Box (CFO)
Mr. Box leads SDX’s finance team, having previously worked for PwC in the UK, Australia and Mongolia. He has 13 years professional experience in
accounting, capital markets transactions, post-merger integrations and internal controls.

Rob Cook (Subsurface and Operations)
Prior to joining SDX, Dr. Cook was a senior G&G professional for 25 years at BG Group plc, playing a key role in several of BG’s major developments in both
North Africa (resident in Cairo) and Brazil. Dr. Cook has also been integral to SDX’s exploration results in Egypt and Morocco.

Roger Wibrew (Facilities and HSE)
Mr. Wibrew has over 18 years’ process engineering experience in the upstream onshore oil and gas industry. He has previously worked for Hess in Algeria and
West Texas where he was responsible for facilities engineering and capital projects, including gas plants producing up to 330MMscf/d.

Mohamed Farid (Egypt Country Manager)
Mr. Farid has 28 years’ experience, the majority of which is in oil and gas (upstream & downstream) having worked for BG and BP in Africa, Europe, Asia and
the Middle East where he acquired significant exposure to M&A in the energy sector.

Lonny Baumgardner (Morocco Country Manager)
Mr. Baumgardner has 25 years’ experience across many elements of the oil and gas business, having worked in Canada, the Kingdom of Saudi Arabia, Greece,
Australia, and on two ventures in Egypt. He has resided in Rabat, Morocco since 2016 and is responsible for all aspects of SDX’s business in country.

Alistair Green (Business Development)
Mr. Green manages Business Development activities at SDX, having previously worked with BG Group on international projects for 12 years, based in the UK
and internationally. He has broad commercial and technical experience having previously held roles in reservoir engineering and in petroleum economics. He
has an MBA (Distinction) from Henley Business School and an MSc. in Petroleum Engineering (Distinction) from Imperial College.

  SDX ENERGY                                                                                                                     WWW.SDXENERGY.COM
SDX ENERGY                                                                                                                                     24
CHAIRMAN AND NON -EXECUTIVE DIRECTOR PROFILES
               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. He has been a director of Equal Energy Ltd since 1997.
               Mr Doyle was previously a principal and Chief Executive Officer of Petrel Robertson Ltd where he was responsible for providing advice 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 Senior Managing Partner at 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.

  SDX ENERGY                                                                                                                     WWW.SDXENERGY.COM
25

   APPENDIX

SDX ENERGY    WWW.SDXENERGY.COM
Q3 2019 FINANCIAL RESULTS                                                                                                                 26
                                            FINANCIALS
•   Net revenue of US$38.0 million, 5% lower than YTD’18 due to
    11% decrease in realised oil price offset by 1% production
    increase to 3,501 boe/d.
•   On 7 November 2019, first gas was achieved from the South
    Disouq gas field in Egypt (SDX: 55% working interest and                                                                                        Nine months ended 30
    operator) with production increasing ahead of expectations from                                                                                      September
    c.24 MMcfe/d to c.35 MMcfe/d in the first two weeks of               US$ million except per unit amounts                                         2019        2018
    operations.                                                          Net revenues                                                                  38.0                 39.8
•   1% YoY production increase driven by Meseda (18%) and                Netback (1)                                                                   27.5                 31.3
    Morocco (20%) offset by NW Gemsa (-10%).                             Net realised average oil/service fees - US$/barrel                           56.44                63.69
                                                                         Net realised average Morocco gas price - US$/mcf                             10.32                10.52
•   Netback of US$27.5 million, 13% down on YTD’18 mainly due            Netback – US$/boe                                                            28.76                33.18
    to increased opex as a result of:
                                                                         EBITDAX (1) (2)                                                               23.4                 27.2
      •      Decrease in revenue, as explained above                     Exploration & evaluation expense (“E&E”)                                      (0.8)                (5.5)
      •      Increased workover activity in YTD’19; and                  Depletion, depreciation and amortisation (“DD&A”)                            (18.4)               (10.9)
                                                                         Total comprehensive income                                                      -                   4.1
      •      Allocation of costs to opex greater in YTD’19, with these
                                                                         Net cash generated from operating activities                                  18.0                 27.3
             costs allocated to capex/drilling campaigns in Morocco
                                                                         Cash and cash equivalents                                                     12.6                 18.7
             and NW Gemsa in YTD’18.
                                                                         (1) Refer to “Non-IFRS Measures” section of the YTD & Q3 2019 Financial & Operating results press release for
•   Operating cash flow before capex in YTD 2019 remained robust         details of Netback and EBITDAX.
                                                                         (2) EBITDAX for YTD 2019 and YTD 2018 includes non-cash revenue relating to the grossing up of Egyptian
    at US$18.0 million.                                                  Corporate Tax on the North West Gemsa PSC which is paid by the Egyptian State on behalf of the Company
                                                                         (YTD 2019: US$2.7 million, YTD 2018: US$3.7 million).
•   US$22.8 million of capex invested in period, of which, US$14.3
    million was for the South Disouq development.
•   Cash at 30 September 2019, US$12.6 million (31 December
    2018, US$17.3 million) with the US$10.0 million EBRD credit
    facility

          SDX ENERGY                                                                                                                       WWW.SDXENERGY.COM
SDX ENERGY PLC                                                                                            27
              LISTING OF SIGNIFICANT SHAREHOLDERS
                                                           Shareholder                            Percentage
                                                                                                   holdings1
                                                 SDX SPV Limited/Waha Capital                       19.48%

                                                            Ingalls and Snyder                      18.91%

                                                          River and Mercantile                       9.20%

                                                      Hargreaves Lansdown AM                         6.90%

                                                           Highclere Investors                       5.02%

                                                           Interactive Investor                      4.46%

                                                      Mr Nikolaos D Monoyios                         4.37%

                                                          Dr Valerie A Brackett                      3.78%

                                                  AXA Investment Managers SA                         3.45%

                                  Total holdings of shareholders > 3% holding                       75.57% 2

1: Percentage holdings as at 11 December 2019.
2: Significant shareholder split 64.21% institutional and 11.36% retail as at 11 December 2019.

SDX ENERGY                                                                                                     WWW.SDXENERGY.COM
Disclaimer
                                                                                                                                                                                           28
This document, which is personal to the recipient, has been issued by SDX Energy plc (the “Company”). This document does not constitute or form any invitation to engage in
investment activity nor shall it form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company,
nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute
a recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for sale
in the United States.

This document is being supplied to you solely for your information. The information in this document has been provided by the Company or obtained from publicly available
sources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation or
warranty, express or implied, is given by or on behalf of the Company or any of the Company’s directors, officers or employees or any other person as to the accuracy or
completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’s members, directors,
officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in
connection therewith.

Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on as
a guide to future performance.
Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in
the United States of America, its territories or possessions. Neither this document nor any copy of it may be taken or transmitted into Australia, Japan or the Republic of South
Africa or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian,
Japanese or South African securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this document
comes should inform themselves about, and observe, any such restrictions.

Forward-looking Information

Certain statements contained in this presentation may constitute "forward‐looking information" as such term is used in applicable Canadian securities laws. Any statements that
express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historical
fact should be viewed as forward-looking information. In particular statements regarding the Company’s plans, the timing of completion of the South Disouq central processing
facility, timing of completion of the export pipelines and well tie-ins, production targets, future drilling, ESP replacement, field facility upgrades, well workovers, and the timing
and costs thereof, as well as capital expenditures, operational expenditures, the Company’s 2019 outlook, should all be regarded as forward-looking information.
The forward-looking information contained in this document is based on certain assumptions and although management considers these assumptions to be reasonable based on
information currently available to them, undue reliance should not be placed on the forward-looking information because the Company can give no assurances that they may
prove to be correct. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned
synergies, capital efficiencies and cost‐savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the timing of and the Company’s ability to obtain regulatory and statutory approvals in connection with the Company’s plans and the availability
and cost of labour and services.

All timing given in this presentation, unless stated otherwise is indicative and while the Company endeavours to provide accurate timing to the market, it cautions that due to
the nature of its operations and reliance on third parties this is subject to change often at little or no notice. If there is a delay or change to any of the timings indicated in this
presentation, the Company shall update the market without delay.
            SDX ENERGY                                                                                                                                        WWW.SDXENERGY.COM
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Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from those
anticipated or implied by such forward‐looking statements. Such risks and other factors include, but are not limited to political, social and other risks inherent in daily operations
for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growth projects or
capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks; competition;
permitting risks; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws and environmental
regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to reference SDX’s Management’s Discussion & Analysis for the nine
months ended 30 September 2019, which can be found on SDX’s SEDAR profile at www.sedar.com, for a description of additional risks and uncertainties associated with SDX’s
business, including its exploration activities.

The forward‐looking information contained in this presentation is as of the date hereof and SDX does not undertake any obligation to update publicly or to revise any of the
included forward‐looking information, except as required by applicable law.

Oil and Gas Advisory

Certain disclosure in this news release constitute “anticipated results” for the purposes of National Instrument 51-101 – Standards for Oil and Gas Activities of the Canadian
Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities of resources in respect of the
Company’s resources or a portion of its resources. Without limitation, the anticipated results disclosed in this news release include estimates of volume, flow rate, production
rates, porosity and pay thickness attributable to the resources of the Company. Such estimates have been prepared by management of the Company and have not been prepared
or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, including those described above and
various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and engineering to be conducted in respect of such
resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary, perhaps materially.

Prospective Resources
The prospective resource estimates disclosed herein have been prepared by an independent qualified reserves evaluator, ERC Equipoise Limited, in accordance with the
Canadian Oil and Gas Evaluation Handbook. The prospective resources disclosed herein have an effective date of 1 st January 2019. Prospective resources are those quantities of
gas, estimated as of given date, to be potentially recoverable from undiscovered accumulations through future development projects. As prospective resources, there is no
certainty that any portion of the resources will be discovered. The chance that an exploration project will result in a discovery is referred to as the "chance of discovery" as
defined by the management of the Company. There is no certainty that it will be commercially viable to produce any portion of the resources discussed herein; though any
discovery that is commercially viable would be tied back to the Company’s pipeline in Morocco and then connected to customers’ facilities within 9 to 12 months of discovery.
Based upon the economic analysis undertaken on any discovery, management has attributed an associated chance of development of 100%. Anticipated results are subject to
certain risks and uncertainties, including various geological, technical, operational, engineering, commercial and technical risks. In addition, the geotechnical analysis and
engineering to be conducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate.
Actual results may vary, perhaps materially.

          SDX ENERGY                                                                                                                                    WWW.SDXENERGY.COM
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Disclaimer

There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources,
but ranges are defined based on data from the Company’s nearby existing analogous wells. Some of the risk and uncertainties are outlined below:
• Petrophysical parameters of the sand/reservoir;
• Fluid composition, especially heavy end hydrocarbons;
• Accurate estimation of reservoir conditions (pressure and temperature);
• Reservoir drive mechanism;
• Potential well deliverability; and
• The thickness and lateral extent of the reservoir section, currently based on 3D seismic data.

Use of the term “boe” or the term “MMscf” may be misleading, particularly if used in isolation. A “boe” conversion ratio of 6 Mcf: 1 bbl and a “Mcf” conversion ratio of 1bbl: 6
Mcf are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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

         SDX ENERGY                                                                                                                                  WWW.SDXENERGY.COM
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