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SDX Energy: SAH-2 Well Test Results & Spud of LNB-1 well, Morocco

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Oilfield Technology,

SDX Energy Inc., the North Africa focused oil and gas company, is pleased to announce that the SAH-2 well on the Sebou permit (SDX 75% working interest) in Morocco has been completed and tested at a restricted rate on a 40/64 in. choke. The well achieved an average flow rate of conventional natural gas of 12.9 million Sft3/d, with a maximum flow rate during this test of 13.5 million Sft3/d. The well will now be shut in for several days for a pressure build-up after which it will be connected to the local infrastructure and placed on test production.

In addition, the LNB-1 well on the Lalla Mimouna permit (SDX 75% working interest) in Morocco has been spud. LNB-1 is the eighth well in the Company's nine well campaign in Morocco, and the first of two remaining exploration commitment wells to be drilled on the permit in 2018. The well is anticipated to take between 15 - 20 days to drill and if successful it will be completed, flow tested and connected to existing infrastructure.

Paul Welch, President and CEO of SDX, commented:

We are very pleased to have reported a strong flow test result from our SAH-2 well in Morocco. This positive outcome underpins our guidance of gross production target of 8 - 10 million Sft3/d of conventional natural gas in Morocco by the end of 2018.

"The LNB-1 exploration well represents an excellent exploration opportunity for us in Morocco. Success in LNB-1 will open up a large section of new acreage for development in the Gharb Basin, potentially allowing us to expand our overall production footprint in Morocco. We look forward to updating our stakeholders on the result in due course.”

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