SDX Energy Plc (AIM: SDX), the EMEA-focused energy company, is pleased to announce the spudding of the SAK-1 exploration well on the 6 August 2022 at the Lalla Mimouna Sud concession, Morocco (SDX WI: 75%).

SAK-1, is targeting the Guebbas Formation reservoir at around 1,108m MD (1,095m TVDSS). The well will also complete the remaining commitment on the Lalla Mimouna Sud Concession.

SAK-1 is the first of a fully-funded, two well campaign on the SDX Gharb Basin acreage, Morocco planned for Q3 2022, with up to a further three wells being considered for acceleration into Q4 2022/Q1 2023 depending on the results of the Q3 campaign and customer demand.

Mark Reid, CEO of SDX, commented: 'I am pleased to announce the spudding of SAK-1, the first well in the two well Q3 2022 drilling campaign in our Morocco concessions. The objective of this well is to add reserves to allow us to continue supplying gas to our customers in line with their contractual requirements. Success at SAK-1 would also open a new exploration area for us to the west of our existing production hub, with several follow-up prospects already having been identified.

We would like to thank ONHYM for providing invaluable assistance in enabling us to commence drilling operations and I look forward to updating the market further as this well and our broader campaign progresses throughout the year.'

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.

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 future drilling developments and results in the Company's Moroccan concessions, 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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