Knox Energy Solutions AS

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

(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, [email protected]

Harald B. Hansen, CEO,[email protected]

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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