The Board of SDX Energy are aware of rumours concerning its Egyptian business and confirms that the Company has received multiple offers in regard to the sale of its Egyptian assets, which the Board are evaluating. Any proposed transaction would be subject to the usual conditions associated with a transaction of this nature, including but not limited to the satisfaction of a number of condition precedents such as Government and Shareholder approval.

SDX Energy in Egypt

South Disouq
The South Disouq concession in the Nile Delta contains the producing South Disouq, Ibn Yunus and Sobhi gas fields. In 2017 the South Disouq field was discovered by well SD-1X, which flow-tested gas at 26 MMscf/d from the Abu Madi Formation; this was followed in 2018 by appraisal wells SD-3X and SD-4X. In 2018 the Ibn Yunus-1X exploration well discovered gas in the basal Kafr El Sheikh Formation and was successfully flow tested at 39 MMscf/d.

The construction of a Central Processing Facility, a 10 km export pipeline, and the tie-ins for the four existing production wells at South Disouq and Ibn Yunus was completed in 2019. First gas was achieved, on time and on budget, in Q4 2019 at a gross plateau production rate of 50 MMscf/d, three months ahead of expectations. South Disouq and Ibn Yunus fields are operated by SDX Energy with 55 % working interest, with IPR Energy holding the remaining 45% working interest.

In 2020 the SD-12X Sobhi discovery flow tested gas at 25 MMscf/d from sands in the basal Kafr El Sheikh Formation. The Company elected to drill the Sobhi well at a 100% working interest. In December 2020, a month ahead of expectations, Sobhi was tied in to the South Disouq gas facilities via a 5.8 km connection to the Ibn Yunus-1X location, where an existing flow line connects to the South Disouq CPF. In July 2021, development well IY-2 was drilled at the Ibn Yunus field and discovered gas in the BKES sandstones, and came online in August 2021.

West Gharib
In the Eastern Desert, the Meseda and Rabul fields are situated in the G and H blocks respectively within the West Gharib concession. SDX Energy holds a 50% non-operated working interest in both blocks. The Company continues with the drilling of regular appraisal and development wells to maintain stable production. In Q1 2020, the RB-3 well was successfully drilled for completion as a producer, adding around 300 bbl/d to the overall production of the asset. A 13 well drilling campaign kicked off with MSD-21 in October 2021, with drilling expected to continue to 2023.