Knox Energy Solutions AS

Investor Presentation • Aug 23, 2024

Knox

Presentation at Knox Extraordinary Shareholders Meeting August 23, 2024

Status

Knox will own 39.3% of Rapid Oil Production Ltd

• Reserves: 1 mill bbls
• Undiscounted cash flow, after tax, \$80/bbl oil price: \$33 mill (NOK 347 mill)
• NPV (10), \$80/bbl oil price: \$17 mill (NOK 184 mill)
• Organization
  • Geir Aune (Chairman)
  • Harald Hansen (CEO)
  • Georges Lambert (board member)
  • Sven Tiefenthal (future CTO and board member)
  • Xxxx (ex senior executive from major service company)
• Ongoing projects
  • Rapid Oil
  • Scimitar, Oil company producing 3,000 bbls/d

Knox

Short term plan

• Rapid Oil Production Ltd.
• Scimitar
  • Ongoing negotiations
  • Well run heavy oil production in Egypt
  • Currently producing 3,000 bbls/d
  • Plan to increase production to 8,000 bbls/d within 18 months
• Development of transaction opportunities
  • In discussions regarding three additional opportunities
  • Working on a short list for smaller UK public companies
• Further strengthening of the team
  • Ongoing discussions with a small group of previous senior oil and oil service industry executives
  • Discussing a combined team with Scimitar

Strategy - building an industry consolidator

Focus on corporate capital market transactions

• Corporate transactions more attractive than asset acquisitions
• Better value opportunities
• Possible to achieve higher transaction speed and efficiency
• Requires combination of strong experience and track record in the capital market combined with high level subsurface and oilfield services technical and operational competence
• The Knox team has good experience and track record in deal making and efficient execution of capital market transactions
• Three main focus areas
  • Smaller undervalued companies
  • Special situations
  • Royalty positions

Market

• Oil macro
  • Carbon based energy represents about 80% of current energy production
  • The world will need oil and gas for a long time into the future
• Industry trends
  • Consolidation
  • Integration of services
• Required qualification to utilize market opportunities
• Large number of small and undervalued public oil companies
  • Representing opportunity for acquisition of production at attractive levels
  • Inefficient operation
  • Lacking economy of scale
  • Difficulties raising financing
  • Valuation below asset values