Sdx Energy Plc. · OTC:SDXEF
Sdx Energy — Oil Capital Conference (September 2016)
32 slides from Sdx Energy's conference presentation, Sep 21, 2016
Slide 1: Oil Capital Conference
September 21, 2016 Oil Capital Conference
Slide 2: Forward-looking Statements and Reserves Data
Forward-looking Statements Reserves Data This presentation contains certain statements or disclosures relating to, among other things, SDX Energy Inc. (“SDX”), The determination of oil and natural gas reserves involves the preparation of estimates that have an inherent degree of its proposed private
Slide 3: Company overview: AIM and TSX-V listed
• AIM and TSX-V listed (TSXV: SDX/ AIM:SDX) • High margin producing assets: • Cash flow positive (asset and corporate levels) • Net production 1,550 boe/d • 7.34 mmboe 2P reserves (31/12/15) • Development potential to 2X production and 3X reserves • High impact exploration program underway • Solid b
Slide 4: Management team
Paul Welch, CEO (London) CEO of two public exploration and production companies, 15 years with Shell Developed Pioneer’s Tunisian portfolio from 500 boepd to a peak of over 25,000 boepd Mark Reid, CFO (London) Finance Director at AIM listed Aurelian and Chariot Oil and Gas Limited (2009-2015) Former
Slide 5: Investment highlights
• Diverse portfolio: Producing assets combined with material exploration potential • High margin: opex <US$10/bbl, generate positive cash flow down to US$15/bbl Brent • Clear development opportunity: • Well workover program can 2X existing production • Waterflood and Infill program can 3X existing r
Slide 6: Growth strategy: mid-tier E&P in Egypt
• Create a profitable mid-tier E&P by focusing on an aggressive Egyptian growth strategy, delivering superior returns to shareholders • Near Term: • Development of existing high margin production base • Increase margins by further opex reductions. Target opex <US$5/bbl • Target of net 3,000 boepd •
Slide 7: Egypt: Highly Attractive Operating Environment
EGYPT: HIGHLY ATTRACTIVE OPERATING ENVIRONMENT
Slide 8: Egypt 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) largest discovery globally in 2015 • Excellent operating environment #2 • Competitive fiscal terms, low operating costs • Decreasing costs • Servic
Slide 9: High Margin Producing Assets
HIGH MARGIN PRODUCING ASSETS
Slide 10: Assets - Egypt
ASSETS - EGYPT ¢ oO ai ry Np 5 ON a, mm ao a ae « South Disouq \ (SSS. a North West Gemsa
Slide 11: NW Gemsa concession
10% Working Interest 7,370 boepd Avg. production (gross), June 2016 9.43 Mmboe 2P Reserves (gross), 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 onshore concession 300km
Slide 12: NW Gemsa waterflood and netbacks
• Waterflood development essentially completed in 2 horizons • Unitisation efforts underway with offset operator. Expect to conclude Q4 2016. Additional development potential once unitisation is finalized • Low operating costs ~ $US6/bbl. Very low future Capex requirements. Significantly cash genera
Slide 13: Meseda field
• 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 gross reserves – 12.8 MMboe – 31/12/15 • Current Product
Slide 14: Meseda facilities study and netback
• Subsurface geologic modelling completed • Well performance review and modelling completed • Sub-surface simulation completed • Facilities’ study nearing completion • Significant improvement in well performance identified through recent studies • Potential to 2X current production with workovers Q4
Slide 15: Pump sizing study findings
Gaffney Cline & Assoc (GCA) study concluded that most pumps are incorrectly sized Properly sized ESP’s can, at a minimum, double current production rates Page 15
Slide 16: Meseda production history and forecasts
Meseda Field Egypt - Production History and Forecasts 10,000 9,000 Oil Production - Barrels/Day 8,000 7,000 6,000 5,000 Base + Workovers + Waterflood Rec Eff: 35% 4,000 3,000 Base + Workovers Rec Eff: 19% 2,000 Base Case (PDP) Rec Eff: 13% 1,000 0 03 November 2011 30 July 2014 25 April 2017 20 Janua
Slide 17: Prospect Summaries
Prospect Summaries • 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 • Both prospects are within the same SHF development lease sec
Slide 18: Exploration
EXPLORATION
Slide 19: Abu-Madi – Baltim Trend
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 First peri
Slide 20: 3D seismic acquisition and processing timeline
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Mobilization Acquisition Testing and Fast Track Processing PSTM Processing PSDM Processing Key Dates • Field tapes delivered on June 19th • Fast Track volume received July 19th • PSTM completion on September 2
Slide 21: Anubis-1X and Osiris-1X prospects
Anubis-1X Abu Maadi Prospect Osiris-1X Abu Roash/AEB Prospect Page 21
Slide 22: Anubis-1X target interval Abu Maadi
Well developed 4-way dip closure at top Abu Maadi interval Target Interval: Abu Maadi Osiris-1X Anubis-1X Page 22
Slide 23: Anubis-1X shallow gas zone
• Overlying Khafr El Sheikh Anubis-1X zone offers opportunities added low-risk gas potential • Good seismic resolution of shallower intervals creates Shallow Gas Zone in opportunities to target stacked Khafr El Sheikh pay intervals Brightening Amplitudes • Play fairway analysis shows Against Fault t
Slide 24: Osiris-1X target intervals
Faulted 4-way dip closure Target Interval: Abu Roash Target Interval: AEB-3 Osiris-1X Page 24
Slide 25: Onshore Nile Delta exploration potential
Onshore Nile Delta Egypt • Transformational Exploration potential • Potential for 320 BCF (Pmean) net to SDX’s 55% interest • Have also identified deeper potential in Abu Roash & AEB within concession • 300 km2 of 3D Seismic at South Disouq acquired • Exploration well to spud late Q4 2016/early Q1 2
Slide 26: Egyptian Roll-Up Opportunity
EGYPTIAN “ROLL-UP” OPPORTUNITY
Slide 27: Egyptian small and mid-size E&P opportunities
– Egypt has several large players that are focused on gas (primarily offshore) However, it also contains many (20+) small and medium sized companies that are focused on oil (primarily on shore) Too small to survive in the current environment These are the opportunities • >50% looking to exit or redu
Slide 28: Summary
SUMMARY
Slide 29: Field Activity 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 Infill Producer -1 Infill Producer -2 Infill Producer -3 Infill Producer -4 S. Ramadan 3D Reprocessing
Slide 30: Net Asset Value @ 12.5%
Net Asset Value @ 12.5% (US$MM) Operations Value: Brent Fwd. Curve $140 4 Concessions, 1 Operated Year US$/BBL 1,550 boepd production (net) South Disouq Upside RENAV 2016 $47.30 $41.9 $45.4 $119.5 Net Asset Value @ 12.5% (US$MM) $120 High impact prospects in Egypt 2017 $50.74 Core NAV: C$1.2
Slide 31: Summary
• A 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 identified in Meseda. • Potential to 2X existing production rates an
Slide 32: SDX Energy - High Margin Growth
SDA ENERGY HIGH MARGIN GROWTH SD\ ENERG \ Page 32