The Board of Directors (“the Board”) of Dagang NeXchange Berhad (“the Company” or “DNeX”) is pleased to announce that Ping Petroleum UK PLC (“Ping Petroleum”), a business unit under the Company’s energy division held via DNeX Energy Sdn. Bhd., which in turn is a wholly-owned subsidiary of the Company, and Anasuria Hibiscus UK Limited (“Anasuria Hibiscus”) had on 1 September 2023 entered into a separate but identical Farm-in Agreement for License P2451 (“the License”) (“Farm-in Agreement”) with Rapid Oil Production ltd (“Rapid Oil”) (“the Project”).

Under the terms of the Farm-in Agreement, Ping Petroleum and Anasuria Hibiscus shall separately acquire 42.5% equity interest each in the Licence, with the balance 15% to remain with Rapid Oil.

The Licence holds an undeveloped oil field, Fyne Field, located in the Central North Sea, United Kingdom, with an estimated 75 MMboe STOOIP (stock tank oil initially in place). Upon completion of the proposed acquisition, Anasuria Hibiscus shall be appointed as operator of the field development. First oil is expected in 2026, whereupon Anasuria Operating Company Limited (equally owned by Ping Petroleum and Anasuria Hibiscus) will take over as operator of the Fyne production from Anasuria Hibiscus.

The Fyne Field has a water depth of about 90m and is approximately 16kms from the Anasuria Floating Production Storage and Offloading (“FPSO”) vessel. The initial the plan is to tie-back a single well development to the FPSO vessel. Accordingly, the addition of the Fyne Field is expected to increase the value and extend the field life of the existing assets in the Anasuria cluster.

The Anasuria cluster is a balanced portfolio of producing, appraisal and exploration licences in the UK North Sea located 175km east of Aberdeen. It also incorporates the Teal, Teal South, Guillemot A (Ping Petroleum has a 50 per cent interest in each field) and Cook field (Ping Petroleum has a 19.3 per cent interest). All of these fields share the FPSO host platform and lie in a water depth of 94m. Ping Petroleum and Anasuria Hibiscus each have a 50 per cent share of the Anasuria FPSO.

The Project is subject to approval by the North Sea Transition Authority.

None of the directors of the Company, major shareholder or person connected with them has any interest, direct and/or indirect, in the Farm-in Agreement.

This announcement is dated 1 September 2023.