Sdx Energy Plc. · OTC:SDXEF
Sdx Energy — Investor Presentation (October 2015)
29 slides from Sdx Energy's investor presentation, October 2015
Slide 1: A Platform for Growth
SDX ENERGY INC. A Platform for Growth
Slide 2: SDX Energy overview
• SDX Energy is combination of Sea Dragon Energy Inc (TSX-V) and Madison PetroGas (Private) – merger completed early October • Listed on TSX-V with head office in London (Ticker Symbol SDX.V) • Principal assets in Egypt with net production of 1,630 boe/d, 5.1 MMBOE of 2P reserves • Low operating cos
Slide 3: Management and Directors
Name Position Experience Industry Experience • CEO of 2 public junior exploration and production companies Paul Welch CEO 26 Years Oil & Gas • Developed Pioneer’s Tunisian portfolio from 500 boepd to a peak of over 25,000 boepd Banking & • Head of Oil & Gas team at BNP Paribas Olivier Serra CFO 20 Y
Slide 4: Creating materiality and scale through consolidation
Vision • To create a solid mid-tier E&P by focusing on an aggressive Egyptian growth strategy Key Points • Strong BOD & Management Team – ability to capture and operate opportunities • Improving Egyptian business climate with material near term potential • Emerging Local Market Gas Opportunity (not
Slide 5: The Transaction
THE TRANSACTION
Slide 6: Improved access to capital; pro forma company
Madison Petrogas Limited Sea Dragon Energy Inc. Total Proven Reserves (MMBOE) 1.2 Total Proven Reserves (MMBOE) 1.9 Proven + Probable Reserves (MMBOE) 2.2 Proven + Probable Reserves (MMBOE) 2.9 2015 (e) Production (Working Interest) 815 2015 (e) Production (Working Interest) 815 Working Capital (at
Slide 7: Net Asset Value @ 10% (US$MM)
Net Asset Value @ 10% (US$MM)* 200.0 Pro Forma Operations: 180.0 4 Concessions, 1 Operated in the Gulf of Cameroon Upside RENAV $56.8 $92.3 $190.1 Suez Fairway 160.0 Net Asset Value @ 10% (US$MM) 1,630 boepd production (net) South Disouq High impact prospects in Cameroon 140.0 $20.6 Strength
Slide 8: Growth strategy and Egyptian gas market
1) Production Growth: • Increase production through active work programme in existing fields • Infill drilling, workovers and waterflooding • FY15 exit rate c.1,850 boe/d 2) High Impact Exploration: • High impact exploration programme with 3 fully funded exploration wells with transformational poten
Slide 9: Egypt economy and investor confidence
• Economy stabilising with new cabinet and government policy rollout during 2015 • Current Prime Minister was former Energy Minister • Parliamentary elections scheduled for near term • Growing investor confidence in Egypt – 47% increase in the Egyptian EGX30 index over the last twelve months (source
Slide 10: The Producing Assets
THE PRODUCING ASSETS
Slide 11: Assets Overview - Egypt
ASSETS OVERVIEW - EGYPT ¢ oO ai ry Np 5 ON a, mm ao a ae « South Disouq \ (SSS. a North West Gemsa
Slide 12: Producing asset overview and 2015/2016 work plan
10% Working Interest 8,150 boepd Avg. production (gross), September 2015 37 Mmboe 2P Reserves (gross) as of 31 Dec. 2014 20.3 Mmboe Cumulative production to July 2015 5x Production Performance since acquisition in 2010 2x Reserves 4 Fields Al Amir, Al Amir SE, Geyad, Al Ola 83km2 onshore concessio
Slide 13: Asset development status and fiscal terms
• 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 <$5/bbl • G&G team now focusing on: • Updating the subsurface model with recent G&G
Slide 14: Field production and work plan
• Discovered in June 2011 • Production start up November 2011 • Drilled 13 wells to date • 12 wells currently producing • 100+ MMBO STOOIP (total structure) • Current Production: • Gross: 4,250 • Net to WI: 2,125 • Net after state take: 815 • Cumulative Production to Aug 2015: • 4.7 MMSTB • ~6% reco
Slide 15: Development status and G&G focus
• Initial development completed. Implementing waterflood • All facilities and associated construction activity also complete • G&G team now focusing on: • Building a subsurface model with recent G&G data and calibrating it to field performance • Exploration opportunities in deeper horizons (Nubia po
Slide 16: Exploration Upside
EXPLORATION UPSIDE
Slide 17: SDX has material exploration upside with moderate risk exposure
SDX has material exploration upside with moderate risk exposure Egypt South Disouq – Onshore Nile Delta Egypt • Transformational Exploration potential • Potential for c.600bn cubic feet (BCF) net to SDX’s 55% interest • 300 km2 of 3D Seismic at South Disouq planned to commence in November 2015 • Exp
Slide 18: Abu-Madi – Baltim Trend
Abu-Madi – Baltim Trend 55% Working Interest (Operator) 1,275 km2 Concession area 600 BCF Resource potential (P50) 6.4 TCF 100 Mmboe 2P Reserves in Abu Madi – Baltim Trend (IHS) Acquired in the 2013 EGAS bid round 65 km north of Cairo within prolific Abu Madi – Baltim trend : First period work
Slide 19: Seismic line Top Abu Madi
SW-NE line Top Abu Madi Time CI 50 msecs Mean 1.3 TCF recoverable gas Page 19
Slide 20: South Ramadan asset map
12.75% Working Interest Asset Map Proven System 2 wells produced and depleted 3.75 MMbbl Cumulative production Prospectivity 2 drilling locations under evaluation On-trend with adjacent producing fields 1 Field South Ramadan, several fault blocks 26 km2 shallow offshore concession in the Gulf of S
Slide 21: S. Ramadan - Matulla & Senonian Horizons
S. RAMADAN - MATULLA & SENONIAN HORIZONS GS 313-3 NE
Slide 22: Bakassi West asset map
Asset Map 35% Working Interest Petroleum System Nile Delta Play Types NIGERIA 108 MMbbl P50 – Two Prospects in 2016 Campaign Prospectivity 13 Prospects and Leads Adjacent Production Abana Field – SW Corner of Block 85 MMbo Abana Field 388 km2 shallow offshore concession in the Niger Delta Basin
Slide 23: Cameroon - Bakassi West
CAMEROON - BAKASSI WEST SP) ENERGY S Ti 4 Miocana Agbacta Leads, Southem Custer Fra-Miocane Loads, CantralQustar Fra-Miocane Loads, CantralQustar Pra-Miocana Loads, Korther Cluster LalLul 1 1 4 Lu OM Chesure 10% Chesure +1 Structure -6km2 + 4-Way Dip Gosure Potential for Strabgraphic Trap, Updip «Pi
Slide 24: Cameroon - Bakassi West - Traps
CAMEROON - BAKASSI WEST - TRAPS ABANA FIELD (85 MMBO) a, ENERGY Page 24
Slide 25: Active Program in 2015-16
Field Activity 2015 2016 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter NWG Infill Producer 1 Infill Producer 2 Infill Producer 3 Block H Infill Producer 1 Water Injector 2 South Hania well1 Contingent S. Ramadan 3D Reprocessing Interpretation Appraisal well 1 Exploration We
Slide 26: Merger creates compelling value proposition and entry point for investors
• SDX Energy is growing E&P company with diverse portfolio of assets consisting of: • Low cost producing assets • Exploration assets with transformational upside • Well defined growth strategy underpinned by stable production • SDX Energy benefits from a strong balance sheet and positive free cash f
Slide 27: A Platform for Growth
N \ ENERGY A PLATFORM FOR GROWTH
Slide 28: Forward-looking Statements
Forward-looking Statements This presentation contains certain statements or disclosures relating to Sea Dragon, Madison (together with Sea Dragon, the “Parties”), the Transaction and the combined entity that will be created pursuant to the Transaction, which constitute “forward-looking statements” a
Slide 29: Reserves Data
Reserves Data The determination of oil and natural gas reserves involves the preparation of estimates that have an inherent degree of associated uncertainty. Categories of proved, probable and possible reserves have been established to reflect the level of these uncertainties and to provide an indic