SDX Energy Provides Egypt & Morocco Operational Update

Egypt – South Disouq

·    Average gross production of 38.5 MMscfe/d (2,720 boe/d net to SDX) for full year 2022.

·    The SD-5X well, drilled in Q2 2022, is on production and is exceeding the immediate post-drill volume expectations.  It is expected in place volumes will be increased for this well. 

·    Evaluation of the MA-1X well, drilled in Q2-Q3 2022, has been completed and SDX is moving forward on applying for a development lease for the Mohsen discovery. Updates on the progress of the application will be communicated to the market in due course.

·    In 2023, it is anticipated that workover operations will be performed on SD-3X and SD-4X wells, recompleting the wells to shallower reservoirs to maximise recovery, and on IY-2 to restart production from the existing reservoir.

Egypt – West Gharib

·      Average gross production of 2,033 boe/d (389 boe/d net to SDX) for full year 2022.

·      Since October 2022, the development infill drilling campaign has continued with the FDLN-2 and Rabul-9 having been drilled, completed and brought on-line. This brings the total number of wells drilled in the current campaign to eleven.

·      Operations at the Rabul SE-1 exploration well are currently ongoing and the results of this well will be communicated to the market in due course.

·      Workover operations on the existing well-stock to maximise recovery from the fields continues.

·      The operator is evaluating options to increase recovery and plans to bring water injection on the Rabul field.

Morocco

·      Morocco gross production averaged 4.9 MMscf/d for 2022.

·      The SAK-1 discovery well, drilled in Q3 2022, was connected to the network and a long term well test via production is being carried out.

·      The KSR-20 discovery well, also drilled in Q3 2022, was tied-in to the infrastructure and is currently on production.

·      Development activities are ongoing with the testing and tying-in of the 2019 BMK-1 discovery and the connection of our infrastructure to the DOB region.

Jay Bhattacherjee, Executive Chairman of SDX, commented:

“Since my appointment to SDX, we have made solid operational progress, particularly in Egypt despite the current volatile currency situation in country. We are pushing forward to create a sustainable and repeatable strategy to be a leading player in the energy sector and I am confident that through a disciplined approach, we will have the opportunities to deliver future growth as we implement changes to the business for the benefit of our shareholders.“