WHISTLEBLOWING CONTACT SDX Energy Plc HOME ABOUT OPERATIONS ESG INVESTORS MEDIA INVESTOR FAQS Investors » Investor FAQs What is SDX’s next exploration target? Though the Hanut well was unsuccessful, SDX is still focused on growth through both organic and inorganic means. To continue to meet customer demand and in the future, increase our customer base in both Egypt and Morocco, SDX will be targeting a number of exploration drills. South Disouq, Egypt continues to have a promising prospectivity of c.90-100bcf, on which the Hanut well result had little impact. Details of the remaining prospects can be found in the most recent presentation on the website. What is the current production guidance for 2021? 5,620 – 5,920 boe/d, but at 2021 Half Year Results, production was ahead of guidance at 5,931 boe/d. What is the current financial position? SDX’s performance in H1 2021 showed a strong growth in revenue, netback, EBITDAX and operating cash flows versus the same period in 2020, as well as ending the period with a strong liquidity position. Cash generation is expected to continue strongly through 2021 and beyond as approximately 85% of the Company’s cash flows are expected to be generated from fixed-price gas businesses. How is the Company taking advantage of the increased oil prices? Whilst acknowledging the volatility of the commodities market, the recent strong oil price and outlook means that the Group plans to capitalise on its recent production service agreement extension at West Gharib by investing in a 12-well development drilling programme over the next three years, kicking off in Q4 2021. All anticipated drilling campaigns are fully funded. How does management plan to increase production and its customer base in Morocco? In the first half of 2021, SDX saw stronger demand from all Moroccan customers. The first phase of the Morocco drilling campaign, which consisted of three appraisal/development wells in SDX’s operated Gharb Basin acreage in Morocco (SDX: 75% working interest), was successfully completed in June 2021. The OYF-3, KSR-17 and KSR-18 wells were all commercial successes, with OYF-3 and KSR-17 already connected as at 30 June 2021 and producing into the Company’s infrastructure. KSR-18 has been tested and was connected at the end of July 2021. Management estimates that 1.5-1.6bcf of gross resources have been added by these wells, which is in line with pre-drill P50 estimates. Preparations are underway for the drilling of up to two additional wells in Morocco later in the year. Is the Group considering potential M&A opportunities? The Company continues to screen a number of business development opportunities and assesses each on a case-by-case basis. SDX is open to M&A opportunities but will not participate in a process unless management believe it is in the best interests of the Company and all stakeholders. If you do proceed with an acquisition, how will it be funded? The Company recognises the need to consider all available options for funding any future acquisitions and screens each potential transaction against a suite of recognised deal metrics. These metrics include whether the transaction is accretive to existing shareholders. Will you consider a dividend, or a share buy back? The Company continues to assess the optimum use of capital in the interests of all stakeholders, whether that be investment into new projects or returning cash to shareholders. At present the Company is focussed on continued investment of its portfolio and considers this the most appropriate use of the Company’s capital. This will be assessed on an ongoing basis. How does the Company approach Environmental, Social and Governance (“ESG”) issues? As an oil and gas exploration and production company, we recognise our responsibilities to our investors, the environment, particularly in the countries in which we operate, local communities impacted by our business, our employees, host governments and all of our other business partners. Two examples of this are: In Morocco, the Company’s business supports our customers in reducing emissions by burning cleaner natural gas. This saves c.60,000 tonnes of CO2 equivalent per year versus alternative heavy fuel oil; and At South Disouq our CPF runs on produced gas, minimising the carbon footprint of the plant. For more detail on our approach to ESG, please refer to the “ESG” section of our website. Why Invest? 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