Commencement of Drilling Operations at South Disouq

SDX Energy Inc., the North Africa focused oil and gas company, is pleased to announce the commencement of drilling operations on the SD-1X well at its South Disouq concession in Nile Delta area of Egypt.

The well is targeting gas in the upper Abu Madi section and oil in the lower AEB & Abu Roash sections. Drilling operations are anticipated to take between 30 and 45 days, depending upon what is encountered in the targeted intervals.

The Company is also pleased to confirm that upon commencement of operations it has been granted a six-month extension to the first exploration period, until 19 September 2017. This will allow sufficient time for the SD-1X well results to be fully evaluated prior to making any decision to enter into the second exploration period at South Disouq.

Paul Welch, President and CEO of SDX, commented:

"We are extremely pleased to announce the start of this drilling campaign, as well as the extension to the exploration period. This is one of several activities, across the expanded SDX portfolio, that has the potential to further increase our reserve base and ultimately add to our high margin production base. We look forward to providing updates over the course of the campaign."

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