Knox Energy Solutions (KNOX) Earnings Call Presentation

Transaction Overview - Knox Energy Solutions AS will acquire 38% of Inpector for $20 million, consisting of $10 million in cash and $10 million in Knox shares based on a pre-money valuation of $10.4 million[16] - Knox plans to raise $12 million or more in equity and list on Euronext Growth[16] - Post-transaction value is estimated at $32.4 million and post-transaction enterprise value at $32.9 million[18] Inpector Acquisition and Production - Inpector produces heavy oil in Egypt through its subsidiary Scimitar[16] - Knox's funding aims to increase production from approximately 4,000 bbls/d to 10,000 bbls/d within three years, reducing opex from $26/bbl to below $15/bbl[16] - Inpector has significant upside potential with about 700 million bbls of oil in place, targeting a 20% recovery factor[16] Fyne Development Project - Knox owns 40% of Rapid Oil Production Ltd, which controls 58% of Rapid Oil Production Ltd UK, which owns 15% of the fully carried Fyne development project offshore UK[15] - Fyne project reserves are estimated at 1.07 million bbls (2P) and 1.7 million bbls (2P+2C)[15] - Undiscounted cash flow (2P) after tax is projected at $17 million at $70/bbl oil and $23 million at $80/bbl oil[15] - NPV (10) is estimated at $8 million at $70/bbl oil and $11 million at $80/bbl oil[15] Strategy and Focus - The company focuses on corporate capital market transactions, targeting smaller undervalued companies and special situations in the North Sea and North Africa[19] - The company aims to build a dynamic and fast-growing oil company based on accretive transactions[14] Financial Projections and Sensitivities - At $70/bbl oil, the two projects represent fully funded net cash flow after tax of $202 million, and at $80/bbl oil, $268 million[44] - Sensitivity analysis shows that at a flat production volume of 6,000 bbls/d and $100 oil price, net accumulated cash flow is $366 million, or $18 per share, with an MOIC of 11[43]