Sequa Petroleum N.V.

Sequa Petroleum N.V. Bonds Update

Further to its press releases of 14 November 2016, 9

February 2017 and 17 March 2017 Sequa Petroleum N.V.

("Company") notes that a further potential default has

occurred under the Bonds of failure to pay $5.11M interest

under article 10 (a) of the Terms and Conditions of the

Bonds and the failure to remedy has continued for 14

calendar days from 1 May.

The Company expects this new potential default and the

earlier potential defaults to be resolved with its main

shareholder's support for restructuring the Company's debt.

Accordingly, the Company has received confirmation from

Sapinda that the required majority of 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 its subsidiary Tellus Petroleum AS, following

cessation of its E&P activity in Norway.

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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