Sequa Petroleum N.V.

Sequa Petroleum N.V. commences liquidation of its 100% Norwegian subsidiary (Tellus)

Sequa Petroleum N.V. (the "Company") today announces that

consultation procedures with Tellus Petroleum AS ("Tellus") employee

representatives have concluded and Tellus board and shareholder

meetings have resolved to commence the Tellus liquidation process in

accordance with the Norwegian Companies Act.

As stated in the Company's press release of 9 February 2017, the

cessation of its business in Norway, now followed by the

commencement of liquidation, constitutes under article 10 (g) of the

Terms and Conditions of the Bonds a potential default of the Bonds.

The Company expects this potential default, together with the

potential default related to the outstanding Q4 2016 Bond coupon as

stated in the Company's press release of 14 November 2016, to be

resolved with Sapinda's support as the Company understands that the

required majority of the Bonds is held by Sapinda and affiliates.

While amounts received to date have not matched the timing or

quantum requested, the Company currently expects to be able to draw

sufficient funds from its convertible loan facilities with Sapinda

Invest Sarl and Sapinda Asia Limited to enable it to continue to

trade and complete the liquidation of Tellus.

The net funds expected from the repatriation of liquidated assets

together with debt restructuring and possibly new equity and/or debt

funds will enable the Company to progress selected high quality

appropriately sized acquisition targets of production and

development assets elsewhere that are value-accretive and provide

cash flow.

Contacts:

Jacob Broekhuijsen, Chief Executive Officer

+44(0)203-728-4450 or [email protected]

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