H1 2020 Results Highlights 1 20 August 2020...• OYF-2 and BMK-1, confirmed Company’s core...

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1H1 2020 Results Highlights20 August 2020

“Supplying energy in an environmentallyconscious manner to the benefit of all ourstakeholders”


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Contents

Business environment and outlook 3

H1 2020 operational highlights 5

H1 2020 financial highlights 6

H1 2020 production 7

South Disouq drilling 8

Morocco drilling 13

2020 CAPEX guidance 142020-22 Activities and Value Catalysts 15Valuation & share price performance 16

Summary 17

Appendix:

• H1 2020 financial results 19


3Business Environment and OutlookResilience in challenging environment with material exploration prospectivity recently identified

Sound defensive qualities with downside protection against oil prices:

• Fixed-price gas-weighted portfolio with minimal linkage to oil price

• Approximately 90% of the Company's cash flows are expected to begenerated from fixed-price gas businesses in 2020 and 2021 at Brent oilprice of $35/bbl

Strong liquidity position and entering a period of lower capex activity:

• US$9.3 million of cash and US$7.5 million of additional liquidity from theundrawn EBRD credit facility as at 30 June 2020 (unaudited)

• Majority of 2020 capex is completed – continued sharp focus on capitaldiscipline and cash generation

Focussed on NAV accretive growth and shareholder returns:

• Sobhi discovery in period drilled at 100% working interest adding estimated24Bcf of recoverable resource to be tied in to South Disouq processingplant.

• Post Sobhi, a minimum of 100bcf of additional follow on prospectivityalready identified across four proven play types (three within concessionand one 10km to the east). Further analysis underway with this estimateexpected to increase.

• c.20 bcf of near term P50 prospective resource de-risked in Morocco

• Continued evaluation of inorganic growth opportunities through M&A


4Business Environment and OutlookResilience in challenging environment

Resilience and continuity during COVID-19 :

Morocco

• Temporary shut in from three customers re-started in early May at partialcapacity with c.70% of capacity having returned at 19 August 2020

• Remaining five customers have continued uninterrupted

• Moroccan business remains extremely resilient and can breakeven withcustomer consumption levels at 20% of Q1 2020 levels

Egypt

• No disruption to production to date

• South Disouq gas sold to EGAS for use predominantly in electricitygeneration

• With bulk of capex spent in early part of year, no disruption to remainingprogramme expected

London

• London Head Office functions continue to operate using internal HSEprotocols facilitating distance working


5H1 2020 Operational HighlightsAdding value through the drill bit in Egypt and Morocco

• The South Disouq two-well drilling campaign was completed during the period,with the second well, SD-12X (100% working interest to SDX), being acommercial discovery adding an estimated 24 bcf of recoverable resources

• Plans underway to connect SD-12X to the Company’s gas processing plant via a5.8km flow which when connected, will produce at a stabilised estimated rate of10-12 mmscf/d in Q1 2021

• Following success of SD-12X, management is looking to high grade a number ofadditional, adjacent and now de-risked, material prospects for drilling in the nexttwo to three years

• Moroccan drilling campaign resulted in seven discoveries from nine wells drilledto date, with the tenth well, LMS-2, completed and awaiting crew mobilisationfor testing post lifting of COVID-19 travel restrictions

• Discoveries at OYF-2 and BMK-1 confirm the prospectivity in SDX’s existingcore production and development area extends to the north, and have de-riskedc.20 bcf of P50 prospective resources


6H1 2020 Financial HighlightsProduction growth, robust operating cash flow, capital discipline and good liquidity

• Production of 6,980 boe/d up 97% vs H1 2019 as South Disouq performed well

• Revenues of US$22.0 million (unaudited) for period with realised Moroccan gasprice of US$10.35/mcf and US$2.85/mcf in Egypt (fixed)

• Netback of US$17.2 million (unaudited) up 38% vs H1 2019

• H1 2020 EBITDAX of US$15.3 million (unaudited) was 65% higher vs H1 2019

• H1 2020 capex of US$19.4 million (unaudited), reflecting:• US$12.2 million for Moroccan drilling campaign;• US$6.0 million for the drilling of the SD-6X (SDX: 55% interest) and SD-

12X (SDX: 100% interest)

• Strong liquidity position (unaudited):• Cash balance of US$9.3 million• Undrawn US$7.5 million EBRD credit facility


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• South Disouq has performed above expectations during H1 2020, with all four wells producing strongly and the CPF achieving higher thanplanned levels of uptime

• Moroccan production saw a strong start to the year, and although consumption has rebounded from shutdowns that ran from late Marchto early May, some uncertainty remains, resulting in small reduction in annual guidance to 5.3 – 6.0 MMscf/d (previously 6.7 – 6.9 MMscf/d).

• With the sale of NW Gemsa having completed in July, full year 2020 guidance is now 6,000 – 6,250 boe/d.

H1 2020 ProductionAbove-guidance performance at South Disouq, temporary COVID impact on Morocco demand

Asset

Gross production boe/d SDX entitlement production boe/d

Actual - 6 monthsended 30 June 2020

Guidance - 12 monthsended 31 December

2020

Actual - 6 monthsended 30 June 2020

Actual 6 months ended30 June 2019

Core assets

South Disouq – WI 55% 52.6 MMscfe/d 47 – 49 MMscfe/d 4,825 -

West Gharib – WI 50% 3,395 bbl/d 3,200 – 3,300 bbl/d 647 822

Morocco – WI 75% 5.7 MMscf/d 5.3 – 6.0 MMscf/d 707 745

Non-core assets

NW Gemsa – WI 50% N/A – now disposed N/A – now disposed 769 1,972

South Ramadan – WI 12.75% 251 boe/d - 32 -

Total 6,980 3,539


8South Disouq DrillingH1 2020 South Disouq Drilling & Operations – Significant discovery on flagship asset

Discovery at Sobhi well has significantly increased resourcefigures at South Disouq and means Group can sustainproduction for longer at its flagship asset

• SD-6X (Salah) drilled in March 2020 - sub-economic (SDX: 55% W.I.)

• SD-12X (Sobhi) exploration discovery (SDX: 100% W.I.) encountered 108 feetnet of high-quality gas-bearing sands

• Following extended well test of SD-12X, stabilised production rate is expectedto be 10-12 MMscf/d from Q1 2021

• Best estimate c. 24 bcf of recoverable gas resources

• Partner has elected not to exercise its back in rights, meaning that SDX willbenefit from 100% of the discovery cash flows

• Sobhi expected to be tied in during 2020/21 via a 5.8 kilometre connection tothe Ibn Yunus-1X location, cost estimated at US$3.5 million

• Sobhi development lease application covers additional prospects de-risked bydiscovery

Egypt asset map


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Shikabala North

ShikabalaWarda

Mohsen

El Deeb

Mohsen and El Deeb proposedexploration concession extension

• Approach being made to EGAS / Ministryto extend the exploration period of theSouth Disouq concession for certainblocks containing additional prospectivity

• Mohsen is a basal KES prospect and ElDeeb is a Buried Hill prospect, a new playconcept in South Disouq

• The Buried Hill play is not proven in theSouth Disouq concession but is proven atDamas South Field, 10km to the east.

Sobhi-Shikabala Development Lease

• Sobhi FDP submitted to EGAS will alsosecure Shikabala and Shikabala Northprospects.

Primary South Disouq Prospects1

Class EUR (bcf) CoS

Warda Prospect 14 50%

Mohsen Prospect 25 51%

El Deeb Prospect 23 29%

Shikabala Prospect 22 40%

Shikabala N Prospect 12 40%

TOTAL 96

(1) SDX Management estimates

South Disouq Drilling96 bcf of un-risked gas potential identified in 5 prospects


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Basal KES Amplitude PlayShallow KES Play

• The Basal Kafr El Sheikh (KES) playhas been proven by success at theIbn Yunus (IY-1X) and Sobhi (SD-12X) discoveries.

• The play is driven by the amplituderesponse seen on 3D seismic data.

• Post the success at Sobhi, four otherlow-risk prospects have beenidentified totalling an estimated73bcf recoverable resource: Mohsen,Warda, Shikabala and ShikabalaNorth (SDX Management estimate)

Sobhi

Ibn Yunus

• The Shallow Kafr El Sheikh(KES) play has been proven bysuccess at the SD-3X(encountering two separatefeatures, shown above) and SD-6X wells (not shown in theschematic).

• So far the volumes discoveredhave been small but representuseful additions to existing fieldsthat can be exploited as themain reservoirs becomedepleted.

South Disouq DrillingFuture exploration potential identified in four proven play types


11South Disouq DrillingFuture exploration potential identified in four proven play types

Abu Madi Play

• The Abu Madi 4-way dipstructural play is proven by theSouth Disouq field.

• Mapping continues on thishorizon identifying new leads withthe same structural configurationas South Disouq.

SouthDisouq

• The Buried Hill play is notproven in the South Disouqconcession but is proven atSouth Damas Field, 10km to theeast.

• Detailed mapping of the seismicover South Disouq hasidentified look-alike features.

• One feature (El Deeb) has beenbrought to prospect status andhas the potential to add 23bcfrecoverable resource (SDXManagement estimate). Twoother significant features arebeing reviewed.

Buried Hill Play


12South Disouq DrillingAdditional prospects and leads identified

• Further work is being undertaken on a number of additional prospects and leads across the four play types, as indicated below.Volumetrics for these prospects and leads will calculated in the coming weeks.


13Morocco DrillingH1 2020 Morocco Drilling & Operations – growing production, reserves and resources

Drilling success in Morocco has significantly increased theGroup’s recoverable resources and its production capabilities

• Two appraisal/development wells were drilled in Q1 2020:o Near to infrastructureo SAH-3 encountered 0.5 bcf recoverable from this well - tied into

production infrastructure later in 2020o SAH-5 sub-commercial

• OYF-2 and BMK-1, confirmed Company’s core productive area extends to thenortho Management estimates that 1.3–1.9 and 0.9 bcf of gas is recoverable

respectively

• LMS-2 encountering a 10.6 metre net gas with 30.9% porosity - to beperforated and tested

• Tie-ins and future drilling activity being considered in context of optimisingcapital allocation

Morocco prospects map


142020 Capex Guidance

Capital discipline• FY20 capex guidance revised from US$28.2 million to US$26.2 million following NW Gemsa sale. Previously budgeted US$2.0

million of workovers on this asset will no longer be incurred.

• US$19.4 million (unaudited) of capital expenditure has been invested into the business during the six months ended 30 June2020, see table below. Following the completion of the South Disouq and Morocco drilling, the majority of 2020 capex has beenincurred.

• Company will continue to exercise prudent capital discipline when evaluating expenditure for the remainder of this year,particularly given current macroeconomic circumstances

Asset FY2020 CapexGuidance

Actual – 6 monthsended 30 June 2020 Notes

Core assets

South Disouq – WI 55% US$10.7 million US$6.5 million

H1 2020: US$5.7 million for the drilling of the SD-6X (SDX: 55%interest) and SD-12X (SDX: 100% interest) wells (including US$0.2million of decommissioning provisions), US$0.3 million Sobhidevelopment lease bonus and $0.5 million for additional work andinsurance spares at the South Disouq CPF

West Gharib – WI 50% US$2.0 million US$0.5 million H1 2020: Drilling (Rabul-3) and workovers

Morocco – WI 75% US$13.5 million US$12.4 millionH1 2020: Moroccan drilling campaign spend of US$12.2 million(including $0.5 million of decommissioning provisions) and US$0.2mmillion for Morocco facilities and customer connections.

Non-core asset

NW Gemsa – WI 50% US$nil million US$nil million

Total US$26.2 million US$19.4 million


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SOUTH DISOUQ

MOROCCO

WEST GHARIB

Salah - Uneconomic Volumes

Sobhi discovery - est. 24Bcf recoverable

7 from 10 successful, 1 to be tested

Online - 300boe/d

First exploration wellSecond exploration well

Sobhi tie inSouth Disouq compression

IY-2 drilling & tie-inExp drilling (Mohsen, Shikabala)

Exp drilling (Warda)

Ten-well drilling campaignLMS-2 well test

Appraisal drilling campaign

Rabul-3 drillingMeseda-17 drillingMeseda-20 drilling

Additional infill drillilngInfill drilling ('22)

CompleteBudgetedContingent

2020-22 Activities and Value Catalysts*

Significant value catalysts in Egypt and Morocco in the next three years

Key upcoming catalysts

• Late Q3/early Q4’20 LMS-2 well test in Morocco subject to COVID-19 restrictions being lifted.

• Q1’21 Sobhi well comes on stream.

• Q1’21 West Gharib drilling campaign commences comprising of 8-10 development wells over three years to convert 2.2MMbbls of contingent resources to 2P reserves and increase production to gross 4,000bbl/d.

• Q3/Q4 2021 appraisal drilling commences at OYF, BMK and LMS areas in Morocco.

• Q1’22 commencement of follow on exploration drilling in South Disouq targeting up to 100 bcf of prospectiveresources.

*Includes all budgeted and contingent capex elements

2020 2021 2022


16Valuation & share price performance

• Shares at 16.0p/sh trade at an operating cash flow (2019) multiple of 1.7x:

Summary valuation / liquidityinformation US$ million

Independent 2P reservesvaluation (31/12/19)1 102.4 NPV10

2P reserves valuation assuming$35/bbl Brent in 2020 and$40/bbl in 2021+ (31/12/19)2

81.3 NPV10

Market cap (19/8/20) 43.0

Net cash (30/06/20 - unaudited) 9.3

Liquidity (30/06/20)(cash $9.3 million plus EBRD$7.5 million undrawn facility- unaudited)

16.8

(1) The Company’s Forms 51-101F1, F2 and F3, including details of Price Deck usedavailable on SEDAR.

(2) Based on Independent 2P reserves valuation and adjusts for lower Brent oil priceassumption only.

0

10

20

30

40

50

60

SDX Energy share price (p/share) vs. AIM O&G Index (re-based)& Brent (re-based) since 1/1/19

SDX AIM O&G Brent


17Summary

Minimal disruption due to Covid-19with significant production and revenue

growth period-on-period

Free cash flow from fixed-price gascontracts

Resilient, gas-weightedportfolio, with low

operating costs

Strong balance sheetwith robust liquidity

Material explorationgrowth opportunitiesrecently identified inEgypt and Morocco

Positive outlook for remainder of 2020 as resilient portfolio continues to generatecash allowing optionality to grow business both organically and through M&A


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Appendix


19H1 2020 Financial ResultsProduction growth, robust operating cash flow, capital discipline and good liquidity

Six months ended 30 June(unaudited)

US$ million except per unit amounts 2020 2019

Net revenues 22.0 15.5

Netback (1) 17.2 12.5

Net realised average oil service fees - US$/barrel 30.18 50.57

Net realised average Morocco gas price - US$/mcf 10.35 10.28

Net realised average South Disouq gas price - US$/mcf 2.85 -

Netback – US$/boe 15.25 43.98

EBITDAX (1) (2) 15.3 9.3

Exploration & evaluation expense (3) (5.1) (0.6)

Depletion, depreciation and amortisation (12.0) (7.9)

Profit/(loss) from discontinued operations 1.1 (0.1)

Total comprehensive loss (4.0) (0.4)

Capital expenditure 19.4 21.8

Net cash generated from operating activities (4) 10.0 4.3

Cash and cash equivalents 9.3 11.2

(1) Refer to the “Non-IFRS Measures” section of this release below for details of Netback and EBITDAX.(2) EBITDAX for H1 2020 includes US$2.7 million of non-cash revenue relating to the grossing up of Egyptian corporate tax on the South Disouq PSC which is paidby the Egyptian State on behalf of the Company.(3) US$4.5 million of non-cash Exploration & Evaluation (“E&E”) write offs in total are included within this line items.(4) Excludes discontinued operations

• The table below reflects the results from the North West Gemsa concession, which was held for sale as at 30 June 2020, as a discontinued operation(as required by IFRS). All revenues, costs and taxation from this asset have been consolidated into a single line item “profit/(loss) from discontinuedoperations” in both periods reported. Per unit metrics do not include North West Gemsa.


20Disclaimer

This document, which is personal to the recipient, has been issued by SDX Energy Plc (the “Company”). This document does not constitute or form any invitation to engage ininvestment activity nor shall it form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company,nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitutea recommendation regarding the securities of the Company. In particular, this document and the information contained herein does not constitute an offer of securities for salein the United States.

This document is being supplied to you solely for your information. The information in this document has been provided by the Company or obtained from publicly availablesources. No reliance may be placed for any purposes whatsoever on the information or opinions contained in this document or on its completeness. No representation orwarranty, express or implied, is given by or on behalf of the Company or any of the Company’s directors, officers or employees or any other person as to the accuracy orcompleteness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company’s members, directors,officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising inconnection therewith.

Nothing in this document or in the documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares cannot be relied on asa guide to future performance.

Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, inthe United States of America, its territories or possessions. Neither this document nor any copy of it may be taken or transmitted into Australia, Japan or the Republic of SouthAfrica or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian,Japanese or South African securities law. The distribution of this document in other jurisdictions may be restricted by law and persons into whose possession this documentcomes should inform themselves about, and observe, any such restrictions.


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Forward-looking Information

Certain statements contained in this presentation may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Any statements thatexpress or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or are not statements of historicalfact should be viewed as forward-looking information. In particular, statements regarding the Company’s 2020 production and capex guidance, liquidity and sources of cash flowsin 2020 and 2021, the impact of COVID-19 on customer consumption and future drilling developments and results should all be regarded as forward-looking information.

The forward-looking information contained in this document is based on certain assumptions, and although management considers these assumptions to be reasonable based oninformation currently available to them, undue reliance should not be placed on the forward-looking information because SDX can give no assurances that they may prove to becorrect. This includes, but is not limited to, assumptions related to, among other things, commodity prices and interest and foreign exchange rates; planned synergies, capitalefficiencies and cost-savings; applicable tax laws; future production rates; receipt of necessary permits; the sufficiency of budgeted capital expenditures in carrying out plannedactivities, and the availability and cost of labour and services.

All timing given in this presentation, unless stated otherwise, is indicative, and while the Company endeavours to provide accurate timing to the market, it cautions that, due tothe nature of its operations and reliance on third parties, this is subject to change, often at little or no notice. If there is a delay or change to any of the timings indicated in thispresentation, the Company shall update the market without delay.

Forward-looking information is subject to certain risks and uncertainties (both general and specific) that could cause actual events or outcomes to differ materially from thoseanticipated or implied by such forward-looking statements. Such risks and other factors include, but are not limited to, political, social, and other risks inherent in dailyoperations for the Company, risks associated with the industries in which the Company operates, such as: operational risks; delays or changes in plans with respect to growthprojects or capital expenditures; costs and expenses; health, safety and environmental risks; commodity price, interest rate and exchange rate fluctuations; environmental risks;competition; permitting risks; the ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws andenvironmental regulations. Readers are cautioned that the foregoing list of risk factors is not exhaustive and are advised to refer to the Principal Risks & Uncertainties section ofSDX’s Annual Report for the year ended 31 December 2019, which can be found on SDX’s SEDAR profile at www.sedar.com, for a description of additional risks anduncertainties associated with SDX’s business.

The forward-looking information contained in this presentation is as of 20 May 2020 and SDX does not undertake any obligation to update publicly or to revise any of theincluded forward‐looking information, except as required by applicable law. The forward‐looking information contained herein is expressly qualified by this cautionarystatement.


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Non-IFRS Measures

This news release contains the terms “Netback,” and “EBITDAX” which are not recognized measures under IFRS and may not be comparable to similar measures presented byother issuers. The Company uses these measures to help evaluate its performance.

Netback is a non-IFRS measure that represents sales net of all operating expenses and government royalties. Management believes that netback is a useful supplemental measureto analyze operating performance and provide an indication of the results generated by the Company’s principal business activities prior to the consideration of other incomeand expenses. Management considers netback an important measure as it demonstrates the Company’s profitability relative to current commodity prices. Netback may not becomparable to similar measures used by other companies.

EBITDAX is a non-IFRS measure that represents earnings before interest, tax, depreciation, amortization, exploration expense and impairment. EBITDAX is calculated by takingoperating income/(loss) and adjusted for the add-back of depreciation and amortization, exploration expense and impairment of property, plant and equipment (if applicable).EBITDAX is presented in order for the users of the financial statements to understand the cash profitability of the Company, which excludes the impact of costs attributable toexploration activity, which tend to be one-off in nature, and the non-cash costs relating to depreciation, amortization and impairments. EBITDAX may not be comparable tosimilar measures used by other companies.


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Oil and Gas Advisory

Certain disclosures in this presentation constitute “anticipated results” for the purposes of National Instrument 51-101 – Standards of disclosure for Oil and Gas Activities (“NI51-101”) of the Canadian Securities Administrators because the disclosure in question may, in the opinion of a reasonable person, indicate the potential value or quantities ofresources in respect of the Company’s resources or a portion of its resources. Without limitation, the anticipated results disclosed in this presentation include estimates ofvolume, flow rate, production rates, porosity, and pay thickness attributable to the resources of the Company. Such estimates have been prepared by Company managementand have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Anticipated results are subject to certain risks and uncertainties, includingthose described above and various geological, technical, operational, engineering, commercial, and technical risks. In addition, the geotechnical analysis and engineering to beconducted in respect of such resources is not complete. Such risks and uncertainties may cause the anticipated results disclosed herein to be inaccurate. Actual results may vary,perhaps materially.Use of the term “boe” or the term “MMscf” may be misleading, particularly if used in isolation. A “boe” conversion ratio of 6 Mcf: 1 bbl and a “Mcf” conversion ratio of 1 bbl: 6Mcf are based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Prospective Resources

The prospective resources estimates disclosed or referenced herein have been prepared by Dr. Rob Cook, a qualified reserves evaluator, in accordance with the Canadian Oiland Gas Evaluation Handbook and in accordance with NI 51-101. The prospective resources disclosed herein have an effective date of 1 January 2020. Prospective resourcesare those quantities of gas, estimated as of the given date, to be potentially recoverable from undiscovered accumulations through future development projects. As prospectiveresources, there is no certainty that any portion of the resources will be discovered. The chance that an exploration project will result in a discovery is referred to as the"chance of discovery" as defined by the management of the Company. There is no certainty that it will be commercially viable to produce any portion of the resources discussedherein; though any discovery that is commercially viable would be tied back to the Company’s pipeline in Morocco and then connected to customers’ facilities within 9 to 12months of discovery. Based upon the economic analysis undertaken on any discovery, management has attributed an associated chance of development of 100%.

There are uncertainties associated with the volume estimates of the prospective resources disclosed herein, due to the level of information available on prospective resources,but ranges are defined based on data from the Company’s nearby existing analogous wells. Some of the risks and uncertainties are outlined below:• Petrophysical parameters of the sand/reservoir;• Fluid composition, especially heavy end hydrocarbons;• Accurate estimation of reservoir conditions (pressure and temperature);• Reservoir drive mechanism;• Potential well deliverability; and• The thickness and lateral extent of the reservoir section, currently based on 3D seismic data.

“P50” means that there is at least a 50% probability that the quantities actually recovered will equal or exceed the best estimate.


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H1 2020 Results Highlights 1 20 August 2020...• OYF-2 and BMK-1, confirmed Company’s core...

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