SDX Energy Inc., the North Africa focused oil and gas company, is providing an update on its operations in Morocco.

The KSR-16 well has been connected to the sales line and flow testing is expected to commence early next week. The Company will update the market on the results in due course.

In addition, SDX has been granted a four-month extension to its Lalla Mimouna permit, through to July 22, 2018. This will allow the Company sufficient time to evaluate the results of its upcoming exploration drilling campaign on the permit, which is expected to take place in March 2018.

Following the recent announcement of its spud, the ELQ-1 well in the Gharb Centre permit has been drilled to a total depth of 1484 meters and has encountered 22.6 net meters of reservoir interval and two meters of marginal net conventional gas pay, in the Hoot formation.

Management are of the view that the intervals are not sufficiently commercial to complete the well. As such, the well will be plugged and abandoned and the drilling rig will move to the ONZ-7 development location.

Paul Welch, President and CEO of SDX, commented:
"Despite the result at ELQ-1, we remain very upbeat about the remainder of our Moroccan drilling campaign, which has already yielded discoveries from the first three of this nine well campaign. It is important to note that this well is also the only one in the current program drilled using legacy low-resolution 3D data, acquired from the previous operator. It was an important test that has strengthened our belief in the need to acquire high resolution 3D seismic data, that we have successfully used in our first three wells, across all of our concessions of interest.

“As previously mentioned, a new high-resolution 3D seismic program, in the Gharb Centre concession, has been awarded and the acquisition is on track to begin in the second quarter of 2018. The result of this survey will double the area covered by high resolution 3D data, providing significant additional potential for prospect delineation. We remain on track to achieve our target of increasing gas sales volumes in Morocco by up to 50% and we look forward to updating the market on this in due course.”

About SDX

SDX (TSXV, AIM: SDX) is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. In Egypt, SDX has a working interest in two producing assets (50% North West Gemsa & 50% Meseda) located onshore in the Eastern Desert, adjacent to the Gulf of Suez. In Morocco, SDX has a 75% working interest in the Sebou concession situated in the Gharb Basin. These producing assets are characterised by exceptionally low operating costs making them particularly resilient in a low oil price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt and Morocco.