SDX Energy today announced its unaudited financial and operating results for the three and nine months ended 30 September 2022. All monetary values are expressed in United States dollars net to the Company unless otherwise stated.

YTD 9 months 2022 key highlights:

• Production of 512 bbls/d and 19.3mmscf/d (3,729 boe/d), 3% higher than mid-point full year guidance of 3,480 - 3,795 boe/d.
• EBITDAX of US$21.6 million and operating cash flow (before capex) of US$15.0 million.
• Out of the 14 wells completed across SDX's portfolio in the year to date, eight were producing as at 30 September 2022, two were connected to production post period-end and another two will be connected by the end of November 2022.
• Capex US$22.4 million compared to revised full year guidance of US$26.5 - 28.0 million.
• Net Cash position of US$9.4 million (unaudited) as at 30 September 2022.
• Aleph Commodities and a group of investors acquired a strategic stake in the Company with a view to provide support and financing for growth initiatives.
• Carbon intensity of 3.8kg CO2e/boe YTD'22 at operated assets.

Mark Reid, CEO of SDX, commented:
"SDX's business continued to generate strong EBITDAX and operating cash flow for the nine months to date. We have also successfully drilled thirteen development and exploration wells across our three assets and are delivering on our production guidance. Due to higher than expected standby costs for equipment needed to maintain facility operations, we have increased our Capex guidance for the year.

During the quarter Aleph Commodities along with a group of strategic investors were warmly welcomed into our Company. Aleph has stated that it is their intention to further support the Company with its growth initiatives and at a time of difficult capital markets, this provides the Company with a significant differentiator versus its peers. SDX also underwent some changes to our Board and Senior Management structure during the period with Krzysztof Zielicki joining as a Non-Executive Director and Yvon Quillien joining as our new Chief Operating Officer and, post-period, Jay Bhattacherjee joined as Non-Executive Chairman. I welcome our new Board members and look forward to the upcoming period in what is an exciting time for the Company's future growth"

Three and nine months to 30 September 2022 Operations Highlights

• Entitlement production for the nine months ended 30 September 2022 of 3,729 boe/d was 3% higher than 2022 mid-point guidance of 3,638 boe/d, driven by strong performances in Morocco and at South Disouq, with West Gharib's production lower than expected due to drilling delays and higher water and sand production from some wells drilled on the flanks of the Meseda field.
• The Company's operated assets recorded a carbon intensity of 3.8kg CO2e/boe during the first nine months of 2022.
• In South Disouq, the planned three-well drilling campaign has been successfully completed. The SD-5X and SD-12_East discoveries have been brought online ahead of schedule, delivering production and cash flow. The MA-1X gas discovery well is in the process of being evaluated to determine a commercialisation strategy.
• In West Gharib, six wells have been successfully completed and are on production. Post period-end the next two wells in the campaign, MSD-28 and MSD-22, were drilled and reached TD on 14 October 2022 and 25 October 2022 respectively. MSD-28 encountered 161ft of net oil pay and MSD-22 103ft of net oil pay. Both wells are expected to be on production in Q4 2022.
• In Morocco, both wells (SAK-1 and KSR-20) in the two-well drilling campaign during Q3 2022 discovered gas. SAK-1 was subsequently tied into the Company infrastructure with production commenced post period-end. KSR-20 is currently undergoing testing and will be brought on production in Q4 2022. During Q3, several workovers were performed to access behind-pipe reserves.

Three and nine months to 30 September 2022 Corporate Highlights

• During the quarter a number of Board changes were announced. The Board is now led by Jay Bhattacherjee as Non-Executive Chairman, with his fellow directors being Tim Linacre, Mark Reid and Krzysztof Zielicki.

Production

• Average entitlement production as at 30 September 2022 of 3,729 boe/d, which was 3% higher than mid-point 2022 market guidance of 3,638 boe/d.

KeyFacts Energy: SDX Energy Morocco country profile   l   SDX Energy Egypt country profile