SDX Energy Plc (AIM: SDX), the MENA-focused oil and gas company sets out production and capex guidance for 2021.

All monetary values are expressed in United States dollars net to the Company unless otherwise stated.

Mark Reid, CEO of SDX, commented: 'I am pleased to provide our production and capex guidance for 2021, where after a very solid year of production in 2020, we continue on a similar profile, albeit with some contingency worked in for maintenance in Egypt. Partially offsetting this, I am very pleased to report that Moroccan production has returned to the levels seen before last year's COVID-19 close down. This year's expected operating cashflows, together with our existing cash of approximately US$10 million, will provide ample liquidity to carry out a busy drilling campaign of nine to eleven wells targeting exploration and development opportunities in Egypt and Morocco, including the potentially transformational gross 139bcf Hanut-1X well in South Disouq in Egypt and the testing of our newly discovered Top Nappe play in Morocco. Furthermore, we expect that our EBRD credit facility will soon return to US$10 million of availability and thus provide us with additional liquidity if required.'

2021 Production Guidance

2021 production guidance of 5,620 - 5,920 boe/d is 1-6% lower than 2020 production, excluding the assets divested in 2020 due to expected production downtime from the planned Central Processing Facility ('CPF') maintenance deferred from 2020, together with compression installation and well workovers. This is partially offset by the incremental contribution of 100% of the working interest production from the recently connected SD-12X well. At West Gharib, development drilling is expected to slow natural decline and in Morocco production volumes are expected to increase as recovery from the 2020 COVID-19 close downs continues.

South Disouq: Production guidance for 2021 reflects planned 2-3% CPF downtime due to planned maintenance, the installation of an inlet compressor and several well workovers, none of which occurred in 2020. Where possible, these activities will be synchronised to minimise their impact. The Company's share of gross production will increase due to its 100% working interest in the SD-12X well, which started up ahead of schedule in December 2020.

West Gharib: Production is expected to decline naturally during H1'21 until the planned three to four well campaign commences. Thereafter, the production decline is expected to be arrested, with further development wells planned for 2022 and 2023 with a view to growing production to approximately 3,000 bbl/d.

Morocco: Production guidance is 8-12% higher than 2020 production and reflects a sustained return to normal levels of consumption across the customer base, following COVID shutdowns which impacted 2020 production, together with a full year's contribution from an existing customer's second factory, which came online in December 2020.

COVID-19: The 2021 production guidance presented assumes no significant production curtailments due to COVID-19. Should there be COVID-19 related disruptions, then production guidance may be revised.

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 55% operated interest in the South Disouq 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 five 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.

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 Company's production and capex guidance, future drilling plans in 2021, 2022 and 2023, the re-establishment of US$10 million of availability in the EBRD credit facility and the impact of COVID-19 on customer consumption, should all 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 2019, 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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