Knox Energy Solutions AS - Letter of Intent with Inpector Capital BV

25 Jul 2024 15:37 CEST

(Oslo, 25 July 2024) Knox Energy Solutions AS (Knox, OSE: KNOX) announces that
it has today signed a Letter of Intent (LOI) for cooperation with Inpector
Capital BV (Inpector) in Egypt. Through the transaction, Knox will acquire a
significant minority share of Inpector.

Knox has signed an LOI with Inpector, a company jointly owned by Kenzoll Capital
and Kenda Capital of the Netherlands. The companies have agreed on a set of main
principles for future cooperation and strategy. Knox will be established as the
common vehicle for business development and expansion beyond the Scimitar
operation in Egypt, by actively growing the company through acquisitions.

In the transaction being envisaged, Knox would acquire a significant minority
share of Inpector, the 90% shareholder of Scimitar, through a combination of
shares and cash. Scimitar is a heavy oil producer in Egypt, and it currently
produces about 3,000 barrels of oil per day. With an increase in the working
capital and capex of about USD 12 million, the production can be increased above
6,000 barrels per day.

Inpector will bring major oil company E&P management and technology experience
and competence. Knox is contributing senior oil and oil service management
experience, in addition to a significant track record in capital markets
operations and corporate transactions.

The plan will be to utilize Knox as a platform for adding existing or near-term
production growth. The company will focus on related and adjacent areas, where
the combined team has operational experience, starting with North Sea offshore
production and significantly underexploited heavy oil onshore Egypt, areas
viewed as offering materially undervalued oil and gas resources.

An important part of the future strategy will also be related to corporate
transactions with the objective of consolidating smaller undervalued oil
companies through transactions in the capital market, in order to build a larger
and more efficient company. Knox and Inpector have started discussions with
potential investors regarding a capital raise.

For further information, please contact:

Geir Aune, Chairman, ga@knox-energy.com

Harald B. Hansen, CEO,?hh@knox-energy.com

About Knox | knox-energy.com

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.

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