SDX Energy Corporate Presentation 1 June 2020 SDX ENERGY WWW.SDXENERGY.COM
2 SDX Energy overview Company Overview 3 2020 Guidance and Outlook 4 Core Operated: South Disouq 6 Core operated: Morocco 11 Core Non-Operated: West Gharib 15 Non-Core: North West Gemsa & South 17 & 18 Ramadan Valuation 20 Upcoming Activity and Valuation Catalysts 22 Exco and Board Bios 24 & 25 SDX Summary 26 Significant Shareholders 28 Appendix 29 SDX ENERGY WWW.SDXENERGY.COM
Company overview 3 Egypt: Four Producing Concessions AIM-listed E&P with nine concessions in Egypt and Morocco providing high- margin, fixed-price, gas-weighted production, resilient cash generation and downside protection against lower oil prices. 12.0 MMboe 2P reserves at 31/12/19 1 c. 72/28% gas/oil, with gas businesses in Egypt and Morocco delivering post-tax operating cash flows c. 90% gas-weighted in 2020 and 2021 at Brent oil price of $35/bbl. A strong platform to deliver US$102.4 million NPV10 of value. Portfolio also includes 2.6 MMboe of low-risk contingent resources. Independent 2P reserves valuation (NPV10 at 31/12/19) 1 of US$102.4MM. Market capitalisation of US$46MM as at 18/6/20. 2020 programme to de-risk Morocco: Five Development / NPV10 towards $102.4m valuation. Production concessions High-impact exploration upside potential in existing licence areas in Egypt and Morocco, de-risked by recent successful drilling campaigns, with a focus on short-cycle, NAV-accretive growth projects and shareholder returns. Recent drilling success at Sobhi could result in 50MMscfe/d plateau at South Disouq extending to 2026. Experienced management team focussed on optimising returns for shareholders through recycling capital into growth projects. SDX continues to evaluate inorganic growth opportunities through M&A. (1) The Company’s Forms 51 -101 F1, F2 and F3, including details of oil price assumptions, are available on SEDAR. 51-101 forms relate to oil and gas activities and include audited reserves evaluation. SDX is a Designated Foreign Issuer within the meaning of the Canadian National Instrument 71-102-Continuous Disclosure and Other Exemptions Relating to Foreign Issuers. SDX ENERGY WWW.SDXENERGY.COM
2020 guidance and outlook 4 Gross production Capex US$ million Guidance - 12 Actual - 12 months Guidance - 12 Actual - 3 months Actual 3 Asset months ended ended 31 December months ended 31 ended 31 March 2020 months ended 31 December 2019 December 2020 31 March 2020 2020 Core assets South Disouq – WI 1 55% 6.9 MMscfe/d 47 - 49 MMscfe/d 54.5 MMscfe/d US$4.3 million US$10.7 million West Gharib – WI 50% 4,171 bbl/d 3,200 - 3,300 bbl/d 3,494 bbl/d US$0.5 million US$2.0 million Morocco – WI 75% 6.4 MMscf/d 6.7- 6.9 MMscf/d 6.9 MMscf/d US$10.7 million US$13.5 million Non-core assets NW Gemsa – WI 50% 3,672 boe/d 2,000 - 2,100 boe/d 3,076 boe/d US$nil million US$2.0 million Entitlement BOE 4,062 boe/d 6,750-7,000 boe/d 8,061 boe/d US$15.5 million US$28.2 million FY 2020 US$28.2MM capital programme fully-funded from resilient cash flows, even under low oil prices, and strong liquidity position • Post-tax operating cash flows c. 90% gas-weighted in 2020 and 2021 at Brent oil price of $35/bbl. • US$8.8 million of cash and US$7.5 million of additional liquidity from the undrawn EBRD credit facility as at 31 March 2020 2 . • Discussions are underway with EBRD to extend the length of the facility and to increase its size back to its original $10 million. • Majority of 2020 capex is now completed and entering a period of lower capital activity – significant focus on capital discipline and cash generation. (1) WI = Working Interest; (2) all references to 31 March 2020 financial information should be read as unaudited. 2020 – A year of significant growth for SDX SDX ENERGY WWW.SDXENERGY.COM
5 Portfolio overview Core Operated: South Disouq 6 Core Operated: Morocco 11 Core Non-Operated: West Gharib 15 Non-Core: North West Gemsa & South 17 Ramadan SDX ENERGY WWW.SDXENERGY.COM
South Disouq overview 6 Overview & current status • First gas achieved in Q4 ’ 19, on time and on budget. • Gross plateau production of 50 MMcfe/d (8,333 boe/d). • Sobhi discovery in April 2020 adds an additional 24 bcfe (100% SDX) 2 . • An extended well test indicated that the optimum production rate would be 10-12 MMscf/d. • Partner IPR must pay 45% share of well cost plus 300% premium should they choose to participate. • Gas price US$2.85/mcf, Opex estimated at < US$0.30/mcf, Government take c.51%. Key near-term activity • Sobhi FDP has been submitted to EGAS for approval. • South Disouq licence interests Sobhi development and tie-in is underway with first gas targeted for Q1 2021, facilitating extension of 50 MMcfe/d SDX working interest 55%, Operator plateau to mid-2023. Partner IPR (45%) 2P Reserves 1 49.0 bcfe W.I. • Mature prospect and lead inventory for a drilling campaign P50 Recoverable (Sobhi) 2 24.0 bcfe W.I. to commence in 2022 targeting c.100bcf recoverable Total Recoverable 73.0 bcfe W.I. resource. FY’20 Guidance Q1’20 Actuals Production 47 - 49 MMscfe/d 54.5 MMscf/d (1) 2019 independent CPR. Capex US$10.7 million US$4.3 million (2) SDX Management estimates; Assuming SDX 100% working interest. SDX ENERGY WWW.SDXENERGY.COM
South Disouq production ahead of 2020 guidance with 7 Sobhi success expected to extend plateau to mid-2023 • Production performance through Q1 has outperformed the full year guidance. • Gross plateau production is maintained at ~50MMcfd (8,333boe/d) until mid-2023 with the discovery and subsequent development of Sobhi (P50 recoverable resource of 24bcf 1 ). • Success in the drilling of further low-risk exploration opportunities that exist within the South Disouq area of c.70bcf will extend the plateau further. • An additional 25bcf of higher risk opportunities have also been identified with work progressing with identifying further drilling opportunities. • Fixed price volumes for several years ahead. South Disouq Development Forecast (Gross) 10,000 Average Daily Production, boe 8,000 6,000 4,000 2,000 0 South Disouq (1) Management estimate Sobhi extends production plateau and de-risks further potential at South Disouq SDX ENERGY WWW.SDXENERGY.COM
South Disouq – Sobhi Development 8 • The FDP for Sobhi (Ibn Yunus North) has been submitted to the Egyptian authorities for approval. Shikabala North SD-12X • An extended Development Lease has flowline route been applied to capture some of the Shikabala remaining, nearby low-risk prospectivity (Shikabala and Shikabala North). • Once the FDP has been approved, the SD-12X (Sobhi) well can be rapidly tied Sobhi into the existing infrastructure at low cost, Development $3.5 million gross. Lease • Construction of the 6” flowline will commence towards the end of Q3 Proposed Warda 2021. reshaping of South Disouq • First gas is targeted for Q1 2021. Central Development Processing Lease • The anticipated production rate for SD- Facility 12X is 10-12 MMscf/d. El Deeb Mohsen • Production will be balanced with the existing wells keeping the concession at around 50 MMscfe/d whilst extending the plateau out until mid- 2023. FDP submitted and first gas expected Q1 2021 SDX ENERGY WWW.SDXENERGY.COM
South Disouq exploration – Sobhi well de-risks c.100bcf of 9 incremental prospective resource Shikabala North Sobhi-Shikabala Development Lease • Sobhi FDP submitted to EGAS will also secure Shikabala and Shikabala North prospects. Mohsen and El Deeb proposed licence change • Approach being made to EGAS / Ministry Shikabala to reshape the existing South Disouq Development Lease to secure these Warda prospects. • Mohsen is a basal KES prospect and El Deeb is a Buried Hill prospect, a new play concept in South Disouq • The Buried Hill play is not proven in the South Disouq concession but is proven at Damas South Field, 10km to the east. Primary South Disouq Prospects 1 Class EUR (bcf) CoS El Deeb Warda Prospect 14 50% Mohsen Mohsen Prospect 25 51% El Deeb Prospect 23 29% Shikabala Lead 22 40% Shikabala N Lead 12 40% TOTAL 96 96 bcf of un-risked gas potential identified in 5 prospects (1) SDX Management estimates SDX ENERGY WWW.SDXENERGY.COM
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