1、2015 ANNUAL REPORTCorporate and Financial Highlights CompletedabusinesscombinationbetweenSeaDragonEnergyInc.(“SeaDragon”)andMadisonPetroGasLtd.(“Madison”)onOctober1,2015tocreate“SDXEnergyInc.”;12monthstoDecember31,2015realizednetrevenuesofUS$17.6million(“MM”)andnetbackofUS$11.5MM(2014:US$44.5MMandUS
2、$32.8MM,respectively);12monthstoDecember31,2015realizedaverageoilpriceofUS$41.55perbarrel(“bbl”)(2014:US$82.34/bbl);Exited2015withcashonhandofUS$8.2MMandzerodebtafterrepayingaUS$1.65MMreservesbasedloanandaUS$2.05MMdebenture;InvestedUS$6.4MMofcapitalexpenditureintobusiness;12monthstoDecember31,2015,t
3、otalcomprehensiveincomeofUS$7.4MMcomparedtototalcomprehen-sive(loss)ofUS$(1.0)MMforthe12monthstoDecember31,2014;InSDXs2015financialstatementswhich,underInternationalFinancialReportingStandards(“IFRS”)arerequiredtoreflect12monthsfinancialresultsofMadisonandthreemonthsfinancialresultsofSeaDragon,total
4、comprehensiveincomein2015willbeUS$9.4MMcomparedtoUS$7.9MMin2014;and Totalcomprehensiveincomeforthe12monthstoDecember31,2015andunderIFRSincludesanUS$18.3MMgainonthebusinesscombinationandaUS$6.8MMimpairmentcharge.2015 HIGHLIGHTS:ContentsFinancial and Operating Highlights2Chairmans Statement4CEO/COOs R
5、eview3Operational Highlights Averagedailyoilsalesin2015of1,519barrelsofoilequivalent(“BOE”)perday(“BOE/D”);Averagedailynaturalgasandnaturalgasliquidsproductionin2015of152BOE/D(tobeinvoicedin2016);AsatDecember31,2015,pursuanttotheDegolyerandMacNaughtonReport(asdefinedbelow),provedandprobablereservesn
6、ettoSDXof7.34MMBOE(NorthWestGemsaandMeseda)andgrossmeanprospectiveresourcesof490billioncubicfeet(“BCF”)ofgasand16.33MMbarrelsofoilandliquids(269.5BCFand8.98MMbarrelsofoilandliquidsnettoSDX)atSouthDisouq;InNorthWestGemsa,completedsevensuccessfulwork-overwellsandspuddedAlAmirSE-23developmentwell,which