Knox Energy Solutions AS

Investor Presentation • Jun 21, 2024

Rapid Oil Production Ltd.

Divestment of a Carried Interest in the Fyne Field Q2 2024

STRICTLY CONFIDENTIAL 1

Disclaimer

This document has been prepared by, and is the sole responsibility of, Rapid Oil Production Ltd. (the "Company"). By accepting this document, and in consideration for it being made available to such recipient, each recipient agrees to keep strictly confidential the information contained in it and any information otherwise made available by the Company, whether orally or in writing. In the case of a corporate recipient, this teaser (the "Teaser") may only be disclosed to such of its directors, officers or employees who are required to review it for the purpose of deciding whether to make an investment in the Company. This document has been provided to each recipient at their request, solely for their information, and may not be reproduced, copied, published, distributed or circulated, to any third party, in whole or in part, or published in whole or in part for any purpose, without the express prior consent of the Company. The information contained in this Teaser has been prepared and distributed by the Company. It has not been fully verified and is subject to material updating, completion, revision, verification and further amendment.

This Teaser has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"). This Teaser is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of persons set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it (together, the "Relevant Persons"). This Teaser is directed only at Relevant Persons and must not be acted on or relied upon by persons who are not Relevant Persons. Any other person who receives this Teaser should not rely or act upon it. By accepting this Teaser and not immediately returning it, the recipient is deemed to represent and warrant that: (i) they are a person who falls within the above description of persons entitled to receive the Teaser; and (ii) they have read, agree and will comply with the contents of this notice. Prospective investors must rely on their own examination of the legal, taxation, financial and other consequences of an investment in the Company, including the merits of investing and the risks involved. Prospective investors should not treat the contents of this Teaser as advice relating to legal, taxation or investment matters and are advised to consult their own professional advisers concerning any acquisition of shares in the Company.

Overview of Rapid Oil

• Rapid Oil Production Ltd ("Rapid Oil") is a private, UK registered company
  • Owned largely by board members and management 20 shareholders
  • Experienced board, management and project team
• Sole asset is a 15% carried interest in the Fyne field, following a farm-out to Hibiscus and Ping which completed in November 2023
  • Gross reserves and resources: 17.8 mmboe 2P + 10.7 mmbbls 2C (including Fyne East)
  • Subsea tie-back to the Anasuria FPSO (approx. 18 km tie-back) the FPSO is 100%-owned by Hibiscus and Ping
  • Phased development, with:
    • Phase one: one production well
    • Phase two: one production well 12-18 months after first oil
    • Phase three: potential third well on Fyne East
• FDP and ES submission in July 2024, with FID in mid-2025 and first oil in Q4 2027
• Farm-out key terms:
  • Hibiscus (42.5%, operator), Ping (42.5%), Rapid Oil (15.0%)
  • Hibiscus and Ping are carrying all costs to first oil and to drill the second well, with no cap to the carry
  • Carry repayable by Rapid Oil from 75% of pre-tax net income
  • Carry costs deemed to be incurred by Rapid Oil and thus qualifying as expenditure, in particular under EPL rules
• Rapid Oil is seeking a corporate divestment of the UK limited company or a Fyne asset sale
  • Clean corporate vehicle with no other assets or material liabilities apart from shareholders loans

Rapid Oil

Location map and key licence information

Key information
Country and area	UK Central North Sea
License and block	P2451 (Block 21/28b)
License holders	Rapid Oil (15.0%) Hibiscus (42.5%, operator) Ping (42.5%)
License information	30th Round award Start date: 1 Oct 2018 Term: Second Current term expiry: 31 Sep 2026
Current term requirements	Submission and approval of FDP and Production Consent
Water depth	~90m
Discovered	1986
Historic sunk costs on field	>\$100m*
Wells drilled	6 (9 penetrations)
Wells tested	2 (with good flow)
Reservoir	Eocene aged Tay sandstone
Oil quality (API)	21-27°
Oil in place (STOIP)	75 mmbbls (+20 mmbbls in UT)
Reserves and resources	17.8 mmboe (2P) 10.7 mmbbls (2C)

* Incl. E&A wells & seismic survey

Key highlights

• 15% fully carried interest in the Fyne (Central & NW) field
• Well-appraised field, with six wells and three sidetracks
  • Two wells tested at 3,000 bbls/d (2008) and 3,600 bbls/d (1986)
• Development plan is subsea tie-back to the Anasuria FPSO (18 km tie-back)
  • Anasuria FPSO owned by Hibiscus and Ping, which hold 85% in Fyne
• Phased development \$237m to first oil, \$56m for the second well
  • Phase 1: horizontal producer on Fyne Central
  • Phase 2: second horizontal producer on Fyne NW tentatively 18 months after first oil
  • Phase 3: potential for third horizontal producer on Fyne East or Crinan
• NSTA no objection to concept select letter received in April 2024
• FDP and ES submission in July 2024
• First oil in Q4 2027 at over 10,000 bopd gross IP (1,500 bopd net)
• Future opportunities on surrounding discoveries (Crinan and Dandy) and prospects

1. Included in the current development plan, 10-year field life to 2037 and 90% uptime

2. Additional five years of field life to 2042; 3. Third well in east of structure (Fyne East); 4. Crinan development well (50% on licence)

Rapid Oil

Regional geological setting

Fyne field overview

• Discovered in 1986 by Mobil
• Located along the western flank of the Central Graben
• Broad antiform with three distinct, structural regions: Fyne Central, Fyne NW and Fyne East
• Eocene-aged Tay sandstone
  • Deposited from highdensity turbidites flowing from the west
  • Sub-divided into Upper Tay (UT), Middle Tay (MT) and Main Middle Tay (MMT)
  • 250 ft oil column contained in a 150 ft sand package (MT and MMT) with N/G ranging from 30 to 70%
• Reservoirs are excellent quality, with porosity locally >30% and multi-Darcy permeability
• Oil quality: 21-27 deg. API

Top Middle Tay structure map

Well and seismic history

Well-appraised field, with six wells and three sidetracks

			Location		Static data			Dynamic data
Year	Well	Operator	NW	C	Crinan Dandy	Logs	Core	Image	MDT/RFT	Sample	Test
1986	21/28a-2	Mobil		x		x	UT		x		3600 bpd
1987	21/28a-3	Mobil		x		x	MT, MMT		x
1987	21/28a-4	Mobil			x	x			x	Oil, MT
1987	21/28a-5	Mobil		x		x	MT, MMT		x
1990	21/28a-6	Mobil			x	x			x		910 bpd
1998	Seismic			Western 1998 Speculative Survey
1998	21/28a-8	Monument			x	x	UT		x	Water, UT
1998	21/28a-8z	Monument			x	x			x		1080 bpd
2007	Seismic		Antrim (Gardline) 3D survey
2008	21/28a-9	Antrim		x		x		x	x	Oil, UT+MT
2008	21/28a-9z	Antrim	x			x
2008	21/28a-9y	Antrim		x		x					injection
2008	21/28a-10	Antrim	x			x		x	x	Gas, UT + Oil, MT
2008	21/28a-10z	Antrim	x			x					3000 bpd
2012	21/28a-11	Premier Oil		x		x			x	Gas, UT + Oil, MT

UT: Upper Tay; MT: Middle Tay; MMT: Main Middle Tay

Seismic coverage

• Fields covered by two 3D seismic surveys
• In 2007, Gardline shot a dedicated 3D survey over the Fyne, Crinan and Dandy structures for Antrim Energy

Fyne field development overview*

General

• 155 km East of Aberdeen
• Water depth ~ 90m

Development

• Subsea tie-back to Anasuria FPSO
  • AOC-operated
• Tie–in at Guillemot A riser base
  • ~18 km from Fyne

Wells

• Phase 1 one gas lifted production well on Fyne
• Phase 2 further producer on Fyne

Further Development

• Phase 3 – Further production well

*Subject to final agreement with Anasuria owners

Source: Hibiscus Petroleum Berhad (798322-P)

STRICTLY CONFIDENTIAL 10

Economics summary

Carry costs deemed to be incurred by Rapid Oil and thus qualifying as expenditure, in particular under EPL rules, therefore for a UK taxpayer there is a potential ~\$30m tax savings on the net capex to first oil of ~\$36m

			Rapid Oil tax position		For current EPL payer	For full tax payer
		\$70 / bbl	\$80 / bbl	\$70 / bbl	\$80 / bbl	\$70 / bbl	\$80 / bbl
Oil reserves (gross)	mmbbls	17.5	17.5	17.5	17.5	17.5	17.5
Gas reserves (gross)	mmboe	0.3	0.3	0.3	0.3	0.3	0.3
Total reserves (gross)	mmboe	17.8	17.8	17.8	17.8	17.8	17.8
Oil reserves (net)	mmbbls	2.6	2.6	2.6	2.6	2.6	2.6
Gas reserves (net)	mmboe	0.0	0.0	0.0	0.0	0.0	0.0
Total reserves (net)	mmboe	2.7	2.7	2.7	2.7	2.7	2.7
Pre-tax undiscounted cash flow	\$m	94	123	94	123	94	123
Pre-tax NPV10	\$m	48	64	48	64	48	64
Post-tax undiscounted cash flow	\$m	65	82	75	90	77	93
Post-tax NPV10	\$m	35	44	43	51	47	55
NPV per barrel	\$ / boe	13.0	16.6	16.2	19.2	17.7	20.7
Maximum cash exposure	\$m	-	-	-	-	-	-
Total capex	\$m	(47)	(47)	(47)	(47)	(47)	(47)
Total abex	\$m	(8)	(8)	(8)	(8)	(8)	(8)

Transaction structure and process

Corporate divestment of Rapid Oil Production Ltd, which holds a 15% carried interest in Fyne

Corporate structure

Process

• Gneiss Energy is acting as financial adviser to Rapid Oil on the divestment
• Interested parties should contact Paul Weidman to obtain an NDA
• Upon executing the NDA, parties will be granted access to an online VDR, containing key technical, commercial, operational and legal data, including the farm-out documentation
• Interested parties will then be invited to take part in a management presentation and a physical data room
• The process timeline and offer instructions will be communicated to parties in due course

Gneiss Energy contact information

Paul Weidman Head of Oil & Gas

paul.weidman@gneissenergy.com +44 7717 426 958