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, ga@knox-energy.com
Harald B. Hansen, CEO, hh@knox-energy.com
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.