Friday 1 May 2020

The board of directors (the “Board” or “Directors”) of KrisEnergy Ltd. (the “Company” and together with its subsidiaries, the “Group”) would like to announce that KrisEnergy (Apsara) Company Ltd and KrisEnergy (Cambodia) Ltd (the “Borrowers”), both wholly-owned indirect subsidiaries of the Group, have on 30 April 2020 entered into a credit facility agreement with Kepinvest Singapore Pte. Ltd. as lender (the “Lender”) (the “Loan Agreement”). Pursuant to the Loan Agreement, the Lender has agreed to grant a project financing loan in the aggregate principal amount of up to US$87 million (the “Loan Facility”) to the Borrowers, subject to the terms and conditions set out in the Loan Agreement. A summary of the principal terms of the Loan Agreement is set out in Section 2 of this announcement.

The Loan Facility is intended to be utilised for, among others, the funding of the development of the Group’s near-term development project at Cambodia Block A an offshore development oil and gas asset located in the Khmer Basin of the Gulf of Thailand with approximately 3,083 sq. km of gross acreage in which the Borrowers have an aggregate working interest of 95% (“CBA”).

As announced on 9 December 2019, the Group is currently developing the minimum facilities wellhead platform (“Mini-Platform”) for the Apsara oil field in CBA. Due to the unproven production performance of the Khmer Basin, development of the Apsara oil field will be in several phases to mitigate risk and provide time for the collection and analysis of critical data to be applied in future phases. If further phases of CBA development are pursued, peak production is expected between 2024 and 2026. This development phase (“Mini Phase 1A”) is designed to incur minimum costs to first oil and comprises the Mini-Platform and five initial development wells connected to the Ingenium II production barge for oil, gas and water processing. At least two of the five wells will target fault blocks with previously successful exploration wells. Mini Phase 1A is scheduled to commence oil production in 2020 and to reach a peak production rate of 7,500 barrels of oil per day. The Company estimates that approximately US$87 million will be required to fund the development of Mini Phase 1A at CBA until first oil is produced which is currently targeted for 2020.

The Board would also like to announce that the Company and its subsidiary, KrisEnergy (Asia) Ltd, have on 30 April 2020 issued a letter (“Letter”) to DBS Bank Ltd (“DBS”) in relation to the revolving credit facility agreement originally dated 24 March 2014 entered into between, amongst others KrisEnergy (Asia) Ltd, the Company and DBS, as amended and/or restated on 24 March 2016 and 13 April 2017 and from time to time thereafter and as increased to US$148,270,000 on 11 July 2016 and subsequently increased to US$200,000,000 on 4 April 2019 (the “RCF Agreement” and the revolving credit facility, the “RCF”) to provide assurance in respect of the application of certain cash proceeds received and/or to be received by the Group. The Company understands that there is a bilateral contract between Keppel Corporation Limited (“KCL”) and DBS, pursuant to which the key economic risk in the RCF Agreement is held by KCL. Further details of the Letter are set out in Section 7 of this announcement.

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