Knox Energy Solutions AS - Company update

21 Jun 2024 09:46 CEST

(Oslo June 21, 2024) Knox Energy Solutions AS (Knox, OSE: KNOX) today announces
an update on the company, in addition to an update on its current and future
projects and activities.

Knox went through a significant change in the strategy of the company when it
acquired about 20 percent of Rapid Oil, the owner of 15 percent of the Fyne
field in the UK North Sea. This transformed the previous Hyon AS into a company
focusing on the oil and gas industry.

Knox wants to build a larger company based on being an industry consolidator and
activist shareholder. The company will utilize the opportunity given by the
existence of a large number of smaller and undervalued public oil companies.
These companies represent opportunities for the acquisition of production at
attractive levels, often due to inefficient operation, lack of economy of scale,
or difficulties raising financing.

Knox believes corporate transactions are more attractive than asset
acquisitions. The company has access to a combination of strong experience and
track record in the capital market, strong expertise in subsurface, and
technical and operational competencies in oilfield services, and is in the
process of strengthening the team in the technical area.

There will be four main focus areas for future investments and combinations: (1)
Smaller undervalued companies, (2) facilitating access to the public market for
private companies, (3) special situations and (4) royalty positions. The company
will be opportunistic about its investments and will always be considering new
investments and exits without exception.

Knox will aim to avoid transactions demanding long approval processes related to
government approvals and other bureaucratic processes. This also includes in the
normal course of business staying below mandatory offering thresholds for public
companies and focusing on significantly undervalued companies as long as they
meet certain basic requirements.

Knox will prioritize capital market transactions, due to higher execution speed
and efficiency. Value creation will be achieved through:

· Accretive acquisitions based on improved valuation of the Knox shares,
· Synergies through combination of entities,
· Optimization of operation and cost structures,
· Improved multiples based on increased size of the company and
· Highly attractive dividend policy.

Status on key activities:
Fyne development project: Rapid Oil has started a strategic process of seeking a
buyer or a partner regarding the 15 percent fully carried interest in the Fyne
development project. This is further described in the enclosed teaser.

· Rapid Oil: Knox is following up on the plans related to the investment in
Rapid Oil.
· Negotiations on new business opportunities: The company is currently in
discussions regarding two projects in North Africa. One is related to providing
growth capital for an oil field currently producing 3 million bbls/d of oil
onshore. The second relates to getting access to a license and restart
production from several wells that had earlier been shut down.
· Financing: The company is focused on strengthening its working capital and
has secured a loan facility of NOK 2 million; it is furthermore in discussion
with specific investors regarding a potential convertible loan of NOK 5-10
million. In connection with the new investment opportunities mentioned above,
further capital raises would be initiated if the projects materialized as
expected.
· Strengthening of the team: The company is in dialog with specific
individuals representing significant expertise in their fields and expects to
reach agreements for future cooperation.
· Shareholders Meeting: The shareholders' meeting will take place on 12 July
2024.

For further information, please contact:
Harald B. Hansen, CEO, hh@knox-energy.com

About Knox
Knox Energy Solutions AS is an international energy company, with a holding in
Rapid Oil Production Ltd. (Rapid), a UK-based oil and gas company backed by a
highly experienced board and management team. Knox Energy Solutions AS is listed
on Euronext Growth under the ticker KNOX.

More information:
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622107_21_06_2024_Rapid_Oil_Teaser.pdf