Company Announcements

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

1 August 2022

SDX ENERGY PLC ("SDX" or the "Company")

WELCOMES NEW MAJOR SHAREHOLDER GROUP

SDX Energy Plc (AIM: SDX), the EMEA-focused energy company, is pleased to welcome to the Company a group of shareholders led by Aleph Commodities Limited ("Aleph"), who between them hold 25.65% of the issued share capital of the Company.

Mark Reid, CEO of SDX, commented:

"I am very pleased to welcome Aleph and their fellow investors to SDX. The Company now has a cornerstone shareholder group with significant industry experience and whose intention is to bring financial, commercial and technical resources to support our growth aspirations. I am very excited about our future plans, further details of which I look forward to providing soon."

Statement from Aleph Management:

"The group of shareholders led by Aleph are long term investors. We believe that leveraging SDX's existing operations and technical team with Aleph's financial, technical, and commercial support will enable SDX to increase its production and cash flows multiple times over the next 24-36 months. This will be achieved by investing in existing operations and acquiring assets in jurisdictions, where Aleph has long-standing access and relationships.  We support Mark and his team and we will encourage continued high standards of corporate governance and the strengthening of management and operational teams to maximise long term shareholder returns."

·      Aleph is a global trading and investment company, founded in 2018 by former executives of Deutsche Bank, Goldman Sachs, JP Morgan, Engelhart Commodities Trading Partners, and Credit Suisse, supported by several large US and European family offices who are also shareholders of Aleph.

·      With significant existing investments in the E&P and midstream sectors of the industry, Aleph intends to provide financial, commercial and technical resources to support the growth of SDX.

·      SDX is already working on organic and inorganic growth initiatives which it now plans to accelerate and execute with support from Aleph.

·      The Company plans to update the market on its vision and the implementation of its strategy in the coming weeks.

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. 

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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 Company's future growth plans, strategy and expected support from Aleph, 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.