Keo Capital (KEOC) Investor Update summary

Transformation and Asset Portfolio

• Underwent a major transformation, divesting challenging assets in Brazil and Oman, converting them into cash and focusing on accretive acquisitions, including a major M&A making it the 4th largest shareholder in 3R Petroleum.

• Holds a $140 million market cap, closely matched by $141.8M in cash and short-term investments, mainly shares in 3R Petroleum.

• Holds 4.76% of 3R Petroleum, a major Brazilian E&P company, and exclusivity rights to acquire up to 24% of PetroUrdaneta in Venezuela, both with significant reserves and production potential.

• Established a leading position in Brazil's E&P sector and a solid presence in Venezuela with PetroUrdaneta.

• Significantly reduced costs, simplified the organization, relocated headquarters to Rio, and lowered cost of capital by refinancing debt at half the previous interest rate.

Share Buyback and Capital Allocation

• Initiated a share buyback program for up to 10% of shares, purchasing over 750,000 shares, including 704,400 shares acquired between 13–27 August 2024.

• Buyback program responds to shareholder requests, follows Nasdaq regulations, and aims to deliver shareholder value.

• Plans to return value to shareholders through dividends as soon as value is realized.

U.S. and Brazil Operations

• Illinois Basin operations expanded with three new wells in Q1 2023 and three more recently, with output ramping up 53% year-on-year and further production ramp-up expected in H2 2024.

• Illinois assets provide good cash flow with short payback periods, requiring ongoing drilling.

• 3R and Enauta merger completed, leaving a 4.76% stake in the new entity, now one of Latin America's largest private E&P companies, expected to produce over 100,000 barrels/day by year-end 2024 with strong trading liquidity and competitive tax regime.

• Value creation from DBO acquisition, rolled into 3R at a significant gain, with further upside expected.