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INVESTMENT OML 18 Energy Resource Ltd, (Sahara). These Egypt, South Disouq: Average gross pro-
purported actions were outside of the due duction of 38.5 mcf equivalent per day (2,720
San Leon Energy comments process of law and in breach of the terms and boepd net to SDX) for full year 2022. The SD-5X
conditions as stipulated in the Joint Operating well, drilled in Q2 2022, is on production and
on press speculation Agreement. is exceeding the immediate post-drill volume
Any lack of production from OML 18 alluded expectations. It is expected in place volumes
regarding OML 18 to in the press has been primarily due to the una- will be increased for this well. Evaluation of
vailability of Nembe Creek Trunk Line in the the MA-1X well, drilled in Q2-Q3 2022, has
San Leon, the independent oil and gas produc- last two years and not to any production issues been completed and SDX is moving forward on
tion, development and exploration company suffered by Eroton. It also notes that this is an applying for a development lease for the Mohsen
focused on Nigeria, notes the recent speculation industrywide problem due to widespread and discovery. Updates on the progress of the appli-
in the Nigerian press about the operation of the well-known crude oil theft and sabotage of pipe- cation will be communicated to the market in
Oil Mining License (OML) 18. lines in the Niger Delta. due course. In 2023, it is anticipated that worko-
The Company has been made aware of an Eroton categorically denies any fraudulent ver operations will be performed on SD-3X and
article published in Nigeria on February 25, acts as stated in the press and confirms that it is SD-4X wells, recompleting the wells to shallower
2023, that alleges that Nigerian National Petro- committed to transparency, integrity and that reservoirs to maximise recovery, and on IY-2 to
leum Co. Ltd (NNPCL) has taken over the oper- it continues to operate in compliance with all restart production from the existing reservoir.
atorship of the OML 18. The article also alleges applicable laws and regulations. Egypt, West Gharib: Average gross produc-
various improper actions by Eroton Exploration San Leon currently holds an initial 10.58% tion of 2,033 boepd (389 boepd net to SDX) for
& Production Co., the operator of OML 18. indirect economic interest in OML 18. Fur- full year 2022. Since October 2022, the develop-
In response to these allegations, Eroton pub- ther announcements will be made as and when ment infill drilling campaign has continued with
lished a press release on February 25, 2023, con- appropriate. the FDLN-2 and Rabul-9 having been drilled,
firming: Eroton considers the Nigerian reports San Leon Energy, 27 February 2023 completed and brought on-line. This brings the
to be malicious and false. total number of wells drilled in the current cam-
Eroton remains the operator of OML 18. Spe- paign to eleven. Operations at the Rabul SE-1
cifically, the operatorship of OML 18 is a con- PERFORMANCE exploration well are currently ongoing and the
tractual agreement and is governed by the Joint results of this well will be communicated to the
Operating Agreement, any change to which can SDX Energy issues market in due course. Workover operations on
only be made through a clearly defined process the existing well-stock to maximise recovery
which has not been followed. Therefore, any pur- operational and from the fields continues. The operator is eval-
ported change by any other party is without any uating options to increase recovery and plans to
effect whatsoever. This is despite the attempts of corporate update bring water injection on the Rabul field.
forced displacement of some Eroton staff from Morocco: Morocco gross production aver-
its Alakiri Gas Plant on February 24, 2023 by AIM-listed SDX Energy has provided an opera- aged 4.9 mcf per day for 2022. The SAK-1 dis-
armed and unknown men who claimed to be tional and corporate update regarding its activity covery well, drilled in Q3 2022, was connected to
representatives of one the other JV partners, in Egypt and Morocco. the network and a long term well test via produc-
tion is being carried out. The KSR-20 discovery
well, also drilled in Q3 2022, was tied-in to the
infrastructure and is currently on production.
Development activities are ongoing with the
testing and tying-in of the 2019 BMK-1 discov-
ery and the connection of our infrastructure to
the DOB region.
Corporate Update: Crowe LLP has been
engaged as auditor to the Company. The appoint-
ment of Crowe will be subject to approval by
shareholders at the next Annual General Meet-
ing of the Company. 2022 Year-end results are
expected to be published near the end of April
2023. SDX focused on delivering new vision
focused on operational and technical excel-
lence, disciplined growth, profitability and cash
flow generation through organic and inorganic
opportunities. Daan Hanssen, the Interim CFO,
has tendered his resignation in order to pursue
other interests and will be leaving the Company
at the end of May 2023.
Jay Bhattacherjee, Executive Chairman of
SDX, commented: “Since my appointment to
SDX, we have made solid operational progress,
particularly in Egypt despite the current volatile
currency situation in country.

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