KNOX - START OF CAPITAL RAISE RELATED TO THE INPECTOR TRANSACTION
2025-08-06 13:20:49
Reference is made to the press release issued on July 25 regarding final agreement between Knox Energy Solutions AS (“Knox") and Inpector Capital B.V. (“Inpector”), related to Knox' acquisition of 38% of Inpector. The process of raising USD 12-15 mill to close this transaction will start on Tuesday, August 12, 2025.
Knox will pay USD 10 million in cash, to be primarily used to increase production through accelerated development drilling, and issue 6,276,990 new shares in Knox to Inpector, valued at USD 10 million based on a pre-money valuation for Knox of USD 10.4 million.
This is equal to NOK 16.30 per Knox share, based on a total number of 6,528,070 shares, following pending registration of all exercised warrants. The transaction is subject to Knox raising a minimum of USD 11 million of new equity at a valuation also taking into account the contribution from Inpector.
The Inpector group is producing oil from the Issaran onshore field in Egypt. The Issaran field is a heavy oil field and the production is currently about 4,000 barrels per day. Inpector plans to ramp production up to around 10,000 barrels per day by 2028.
The Issaran concession holds approximately 700 million barrels of oil, and comparable fields have shown recovery factors of more than 20%.
The transaction is in line with the companys plans to grow through the acquisition of companies and Knox has a pipeline of potential follow up projects. Knox already owns 40% of Rapid Oil Production Ltd., which has a 15% fully carried share in the Fyne development project offshore UK.
For further comments, please contact:
Geir Aune, Chairman, ga@knox-energy.com