Sdx Energy Plc. · OTC:SDXEF
Sdx Energy — Non-Deal Roadshow (May 2016)
27 slides from Sdx Energy's roadshow presentation, May 20, 2016
Slide 1: SDX Energy Inc. High Margin Growth Opportunity
SDX Energy Inc. High Margin Growth Opportunity Now on AIM 20 May, 2016
Slide 2: SDX Energy – high margin growth opportunity – Now on AIM
SDX Energy – high margin growth opportunity – Now on AIM • SDX Energy is an Egypt focused production growth story with transformational exploration upside • Formed in October of 2015 with the merger of Madison Petrogas and Sea Dragon Energy • Listed on TSX-V with head office in London (TSXV: SDX/ AI
Slide 3: Experienced Management & BOD
Experienced Management & BOD Individual Position Experience Industry Work Experience CEO CEO of 2 public exploration and production companies, 15 years with Shell Paul Welch 27 Years Oil & Gas (London) Developed Pioneer's Tunisian portfolio from 500 boepd to a peak of over 25,000 boepd Management CF
Slide 4: Key Investment Highlights
Key Investment Highlights • Strong BOD & Management Team with ability to capture and operate opportunities • Diverse portfolio containing high margin producing assets combined with material exploration potential • High margin assets, OPEX <US$10/bbl, generate positive cash flow down to US$15/bbl Bre
Slide 5: Strategic Objective
Strategic Objective • To create a profitable mid-tier E&P by focusing on an aggressive Egyptian growth strategy that delivers superior returns to shareholders • Near Term: • Grow through development of existing high margin production base • Continue to increase margins by further opex reductions. Ta
Slide 6: Why Egypt?
Why Egypt?
Slide 7: Egypt – Geology & Operating Environment
Egypt – Geology & Operating Environment • World Class Hydrocarbon Basins • Western Desert basin 2nd best value creator over the last 10 years • Zohr discovery 22+TCF (4 Billion bbl equivalent) biggest discovery worldwide in 2015. #2 • Excellent Operating Environment • Competitive Fiscal terms combin
Slide 8: High Margin producing assets
High Margin producing assets
Slide 9: Assets Overview - Egypt
Assets Overview - Egypt Page 9
Slide 10: North West Gemsa
North West Gemsa 10% Working Interest 7,936 boepd Avg. production (gross), March 2016 9.43 Mmboe 2P Reserves (gross) as of 31 Dec. 2015 22.3 Mmboe Cumulative production to Dec. 2015 5x Production Performance since acquisition in 2010 2x Reserves 3 Producing Fields Al Amir SE, Geyad, Al Ola 83km2 o
Slide 11: Solid High Margin Producing Asset
Solid High Margin Producing Asset • Initial development completed. Implemented waterfloods in 2 horizons • All facilities and associated construction activity also complete. • Asset is significantly cash generative going forward. Operating costs are ~$US6/bbl • G&G team now focusing on: • Exploratio
Slide 12: Meseda – Significant Development & Exploration Potential
Meseda – Significant Development & Exploration Potential • 50% Working Interest (Operator: Dublin Petroleum) • Discovered: June 2011 • Production start up: November 2011 • Drilled 16 wells to date, 13 wells currently producing • 118 MMBO STOOIP (total structure) • 86 MMBO STOOIP (net to Meseda) • 2P
Slide 13: Meseda – Significant Development & Exploration Potential
Meseda – Significant Development & Exploration Potential • Primary field development • Subsurface geologic modelling • Well performance review and modelling • Sub-surface simulation • Significant improvement in well performance identified through recent studies • Potential to 2X current production w
Slide 14: Meseda Field Development Potential
Meseda Field Development Potential Meseda Field Egypt - Production History and Forecasts1 10,000 9,000 Oil Production - Barrels/Day 8,000 7,000 6,000 5,000 4,000 Base + Workovers + Waterflood Recovery Efficiency: 35% 3,000 Base + Workovers Recovery Efficiency: 19% 2,000 Base Case Recovery Efficiency
Slide 15: Meseda Exploration Potential - Yusr-1X & Rabul-1X prospects
Meseda Exploration Potential - Yusr-1X & Rabul-1X prospects Prospect Summaries2 • Both prospects have similar risk profiles and would be testing similar concepts • The main risk for both prospects is the location of the bounding fault • Yusr-1X appears to have more favourable volumetric assessment •
Slide 16: Meseda – Significant Development & Exploration Potential Summary
Meseda – Significant Development & Exploration Potential Summary Development Potential Workovers • GCA/SDX study has identified significant issues with current ESP pumps • Most pumps are either incorrectly sized and/or have mechanical issues • An 11 well workover campaign has been developed between
Slide 17: Exploration
Exploration
Slide 18: South Disouq
South Disouq Abu-Madi – Baltim Trend 55% Working Interest (Operator) 1,275 km2 Concession area 585 BCF (PMean) Gross Prospective Resources 6.4 TCF 100 Mmboe Rec. Volumes within Abu Madi Baltim Trend (IHS) Acquired in the 2013 bid round 65 km north of Cairo within prolific Abu Madi – Baltim trend
Slide 19: South Disouq - Target and Volumes – Abu Madi Horizon
South Disouq -Target and Volumes – Abu Madi Horizon Top Abu Madi Time CI 50 msecs Mean 1.3 TCF recoverable gas Page 19
Slide 20: DHI @ Abu Madi Prospect
DHI @ Abu Madi Prospect DHI 2 ~14 sq km
Slide 21: South Disouq - 3D Seismic Acquisition
South Disouq - 3D Seismic Acquisition 3D Acquisition Cost: US$14.5MM SDX net: US$7.9MM Size: 300 km2 Volume Potential P10: 1.4 TCF PMean: 585 BCF P50: 349 BCF P90: 109 BCF Targets: Primary: Abu Madi Secondary: Oligocene Kafr El Sheikh Start: March 16, 2016 Finish: June 15, 2016 Exp Well: Dec. 2016 P
Slide 22: Exploration Upside
Exploration Upside South Disouq – Onshore Nile Delta Egypt • Transformational Exploration potential • Potential for 715 BCF net to SDX’s 55% interest • 300 km2 of 3D Seismic at South Disouq currently being acquired. Estimated completion in June 2016 • Exploration well anticipated to spud in December
Slide 23: Activity Timetable – 2016
Activity Timetable – 2016 Field Activity 2016 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter NW Gemsa AASE-23 AASE-24 9 Well Workover Program Meseda Subsurface Mapping Well Review Simulation Study 11 Well Workover Program Contingent Infill Producer -1 Infill Producer -2 Infill Producer -3 Infill Pr
Slide 24: Combined Entity 2015 cash earnings – Including Merger G&A Savings
Combined Entity 2015 cash earnings – Including Merger G&A Savings Average Daily Production BOE/Day 1,518bbls/day Average Realised Price/BOE US$41.55 US$'000s Revenue before royalties 23,030 Total comprehensive income/(loss) for the year 7,961 Adjustments for Non-recurring and material non-cash items
Slide 25: Net Asset Value @ 12.5% (US$MM)
SDX Energy Current NAV – Using Brent Forward Curve (13 April, 2016) Net Asset Value @ 12.5% (US$MM) Brent Fwd. Curve Year US$/BBL $140 Operations Value: 2016 $45.55 2017 $48.00 4 Concessions, 1 Operated South Disouq Upside RENAV 2018 $50.03 1,511 boepd production (net) $41.9 $45.4 $119.9 Net Ass
Slide 26: Investment Summary
Investment Summary • SDX Energy is growing E&P company with a diverse portfolio of assets consisting of: • High margin producing assets • High margin development opportunities • Exploration assets with high impact potential • Significant production growth upside recently identified in Meseda. Potent
Slide 27: High Margin Growth
N \ ENERGY High Margin Growth SD ENERG ‘ Page 27