SDX ENERGY PLC - 30 JUNE 2022 TRADING AND OPERATIONS UPDATE AND INCREASE TO 2022 GROUP PRODUCTION AND CAPEX GUIDANCE

SDX Energy Plc (AIM: SDX), the EMEA-focused energy company, provides an update on production and capex guidance for 2022 following drilling success at South Disouq and provides an update on its unaudited capex, cash, and liquidity position for the six months ended 30 June 2022. All monetary values are expressed in United States dollars net to the Company unless otherwise stated.

Mark Reid, CEO of SDX, commented:

'Following on from our previously announced drilling success at SD-5X in South Disouq, which also includes a richer than expected condensate yield, I am pleased to announce that our 2022 production guidance for this asset is being increased by 15%. Although we have had to slightly reduce our West Gharib production guidance due to mechanical issues with one of the rigs, our overall 2022 group mid-point guidance has increased to 3,480 - 3,795 boe/d from 3,330 - 3,550 boe/d. Given that both the SD-5X and MA-1X wells in South Disouq encountered gas, we have also slightly increased our capex guidance by US$1.8 million, reflecting the costs of completing and testing these wells and tying in SD-5X. I am also pleased to report continued strong production of 3,742 boe/d in the first half of the year which is above our increased 3,638 boe/d mid-point entitlement guidance, and a robust net cash position of US$12.8 million as at 30 June 2022. Finally, we are working with our new cornerstone shareholder Aleph Commodities Limited on a refreshed and ambitious strategy and we will be updating the market on the outcome of this in the weeks ahead.'

2022 Production and Capex guidance revisions

Group 2022 entitlement production guidance is increased to 3,480 - 3,795 boe/d from 3,330 - 3,550 boe/d for the reasons outlined below.

Following the successful drilling and production testing of the SD-5X well, gross 2022 production guidance for South Disouq has been revised upward to 38-40 MMscfe/d from 33-35 MMscfe/d, a 15% mid-point guidance increase. On a net entitlement basis, the new guidance is 2,500-2,700 boe/d, increasing from 2,280-2,420 boe/d.

As disclosed previously, the SD-5X well is currently producing greater amounts of condensate (gross 100-110 bbl/d) than were expected pre-drill (gross 25-30 bbl/d). As South Disouq condensate is sold at 90% of Brent price, this product is highly cash-generative in the current pricing environment, with Netbacks of US$60.93/boe for the six months ending 30 June 2022.

Due to drilling delays resulting from mechanical issues experienced with one of the rigs working on the 13-well West Gharib drilling campaign, gross 2022 production guidance has been revised downwards to 2,000-2,450 bbl/d from 2,200-2,650 bbl/d, an 8% mid-point decrease. On a net entitlement basis, the new guidance is 380-470 boe/d, decreasing from 420-505 boe/d.

Morocco production guidance remains unchanged at gross 4.8-5.0 MMscf/d, 600-625 boe/d net entitlement.

Following the successful drilling, completion testing and tie in of SD-5X, and the drilling, completion and testing of the MA-1X exploration well, both of which were previously assumed to be dry holes for capex guidance purposes, South Disouq capex guidance has been revised upward from US$6.7-7.2 million to US$8.5-9.0 million.

West Gharib capex guidance range has been revised downward by US$0.5 million reflecting drilling delays, with updated guidance of US$4.0-4.5 million. Morocco capex guidance is unchanged, meaning group capex guidance is now US$25.5-27.0 million, versus previous guidance of US$23.7-25.2 million.

Production of 3,724 boe/d for the first half of the year, which is above our increased 3,638 boe/d mid-point entitlement guidance, was driven by strong performances in Morocco and at South Disouq, with West Gharib's production lower than expected due to the mechanical issues with a previous rig that is in the process of being replaced. West Gharib production is expected to increase in the second half of the year.

In South Disouq, the planned three-well drilling campaign has been successfully completed. SD-5X and SD-12_East have been brought online ahead of schedule and are now contributing to production and cash flow. The MA-1X gas discovery well is in the process of being evaluated to determine a commercialisation strategy for the discovery.

In West Gharib the MSD-21, -25 and -24 wells have been successfully completed and are on production. The completion of operations of the MSD-23 well was announced on 15 July and MSD-27 spudded on 21 July. Operations at the MSD-20 well are expected to recommence in August 2022.

In Morocco, preparations continue for the recommencement of the drilling campaign that was suspended in December 2021. The first of up to seven wells to be drilled in the next year is expected to spud in late July 2022.

About SDX

SDX is an international oil and gas exploration, production, and development company, headquartered in London, United Kingdom, with a principal focus on EMEA. In Egypt, SDX has a working interest in two producing assets: a 36.9% operated interest in the South Disouq and Ibn Yunus gas fields and a 67.0% operated interest in the Ibn Yunus North gas field in the Nile Delta and a 50% non-operated interest in the West Gharib concession, which is located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in four development/production concessions, all situated in the Gharb Basin. The producing assets in Morocco are characterised by attractive gas prices and exceptionally low operating costs. SDX has a strong weighting of fixed price gas assets in its portfolio with low operating costs and attractive margins throughout, providing resilience in a low commodity price environment. SDX's portfolio also includes high impact exploration opportunities in both Egypt and Morocco.

For further information, please see the Company's website at www.sdxenergygroup.com or the Company's filed documents at www.sedar.com.

Standard

Estimates of reserves and resources have been prepared in accordance with the June 2018 Society of Petroleum Engineers ('SPE') Petroleum Resources Management System ('PRMS') as the standard for classification and reporting with an effective date of 31 December 2021 and in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ('NI 51-101') of the Canadian Securities Administrators.

Competent Persons Statement

In accordance with the guidelines of the AIM Market of the London Stock Exchange, the technical information contained in the announcement has been reviewed and approved by Dr Rob Cook, VP Subsurface of SDX. Dr. Cook has 30 years of oil and gas industry experience and is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies. Dr. Cook holds a BSc in Geochemistry and a PhD in Sedimentology from the University of Reading, UK. He is a Chartered Geologist with the Geological Society of London (Geol Soc) and a Certified Professional Geologist (CPG-11983) with the American Institute of Professional Geologists (AIPG).

Contact:

SDX Energy Plc

Mark Reid

Chief Executive Officer

Tel: [phone]

Stifel Nicolaus Europe Limited

Nominated Adviser and Broker

Callum Stewart

Jason Grossman

Ashton Clanfield

Tel: [phone]

Camarco

PR

Billy Clegg

Owen Roberts

Violet Wilson

Tel: [phone]

Forward-looking information

Certain statements contained in this press release 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 formulation of the Company's strategic review and expansion plans, and the Company's future drilling developments and results, should 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 announcement, 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 announcement, the Company shall update the market without delay.

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 2021, 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 press release 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

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