SDX Energy Plc (AIM: SDX), the MENA-focused energy company, is pleased to announce the completion of drilling at the MSD-23 infill development well on the Meseda field in its West Gharib concession, Egypt (SDX: 50% working interest).

MSD-23 encountered the primary top Asl Formation reservoir at 3,909 feet MD (3,112 feet TVDSS) and reached a TD of 4,449 feet MD on 10 July. The well encountered 131.5 feet of good-quality, net oil pay sandstone, with an average porosity of 24.1% in the Asl Formation reservoir. The net pay was split across 3 separate sand units, with the upper-most sand covering 7 feet of net pay with 27.4% porosity. This upper oil-bearing sand is at virgin pressure meaning that it has not been depleted by any surrounding wells and it also represents an unanticipated upside as it was not included in pre-drill estimates. MSD-23 will now be tied-in to the existing facilities and flow tested.

MSD-23 is the fifth well in a fully funded, 13-well development campaign on the Meseda and Rabul oil fields in the West Gharib concession, Egyptian Eastern Desert. Operations at the third well, MSD-20, are expected to recommence later this month following the replacement of a rig which had experienced operational issues. The development drilling campaign is aimed at growing gross production to c.3,500 - 4,000 bbl/d by early 2023.

The rig will now move to the next well in the campaign.

Mark Reid, CEO of SDX, commented: 'The logs from MSD-23 indicate an excellent result with the virgin pressure upper sand of particular interest. The well will now be connected to our infrastructure and flow tested and we will update the market on the results of this in the coming weeks. With MSD-23 coming online we expect to increase gross production to 2,300 - 2,400 bbl/d and we are anticipating further increasing production through the completion of operations at MSD-20 and the drilling of the eight remaining wells in the campaign over the next year. I look forward to updating the market further as the campaign progresses.'

About SDX

SDX is an international oil and gas exploration, production, and development company, headquartered in London, United Kingdom, with a principal focus on MENA. 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.

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.

Contact:

Mark Reid

Tel: +44 203 219 5640

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 future production, drilling developments and results at the West Gharib drilling campaign, and the time in which the Company intends to update the market on its future 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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