Pursuant to Paragraph 8.04 and Paragraph 2.1(e) of Practice Note 17 (“PN17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (the “Listing Requirements”), the Board of Directors of the Sapura Energy Berhad (“Company”)  wishes to announce that the Company has become an affected listed issuer under PN17 on the basis that the prescribed criteria under Paragraph 2.1(e) of PN17 has been triggered, in that the Company’s shareholders’ equity on a consolidated basis of RM85.0 million as at 31 January 2022 is less than 50% of its share capital of RM10,872.0 million and the Company’s auditors have highlighted a material uncertainty related to going concern in the Company’s  latest audited financial statements for the financial year ended 31 January 2022.

2. OBLIGATIONS PURSUANT TO PN17

Pursuant to PN17, the Company is required to:-

(i) egularise its condition in the following manner:-

     (a) within 12 months from the date of this first announcement (“First Announcement”):-

           (1) submit a regularisation plan to the Securities Commission Malaysia (“SC”) if the plan will result in a significant change in the business direction or policy of the Company; or

           (2) submit a regularisation plan to Bursa Malaysia Securities Berhad (“Bursa Securities”) if the plan will not result in a significant change in the business direction or policy of the

                Company and obtain Bursa Securities’ approval to implement the plan; and

      (b) implement the plan within the timeframe stipulated by the SC or Bursa Securities, as the case may be;

(ii) provide such information as may be prescribed by Bursa Securities from time to time for public release;

(iii) do such other acts or things as may be required by Bursa Securities;

(iv) announce within 3 months from this First Announcement, as to whether the regularisation plan will result in a significant change in the business direction or policy of the Company;

(v) announce the status of the regularisation plan and the number of months to the end of the relevant timeframes referred to in Paragraphs 5.1 and 5.2 of PN17, as may be applicable, on a monthly basis until further notice from Bursa Securities;

(vi) announce its compliance or non-compliance with a particular obligation imposed pursuant to PN17, on an immediate basis;

(vii) announce the details of the regularisation plan and sufficient information to demonstrate that the Company is able to comply with all the requirements set out in Paragraph 5.2 of PN17 after implementation of the regularisation plan, which announcement must include a timeline for the complete implementation of the regularisation plan and be made by the Company’s Principal Adviser; and

(viii) where the Company fails to regularise its condition, to announce the dates of suspension and de-listing of its listed securities, immediately upon notification of suspension and de-listing by Bursa Securities.

3. CONSEQUENCE OF NON-COMPLIANCE

In the event the Company fails to comply with any part of its obligation to regularise its condition within the timeframes permitted by Bursa Securities, Bursa Securities shall:

(i) suspend the trading of the Company’s listed securities on the 6th market day after the date of notification of suspension by Bursa Securities; and

(ii) de-list the Company subject to the Company’s right to appeal against the de-listing within 5 market days from the date of notification of de-listing by Bursa Securities.

4. STATUS OF PLAN TO REGULARISE CONDITION

The Company is taking the necessary steps to address its PN17 status. As announced by the Company on 10 March 2022, the Company obtained an order pursuant to Section 366 of the Companies Act 2016 to summon meetings of the various classes of its creditors to consider, and if thought fit and appropriate, to approve, a proposed scheme of arrangement and compromise between the Company and its creditors (the “Proposed Scheme of Arrangement”). The Company is currently undertaking a proof of debt exercise in connection with the Proposed Scheme of Arrangement.

The Company is formulating a regularisation plan to address its PN17 status in tandem with the Proposed Scheme of Arrangement and will make monthly announcement on the progress.

This announcement is dated 31 May 2022.