HKN Energy Ltd. (“HKN”) presents an operating and financial update for the nine months ended 30 September 2022. HKN holds a 62% PSC interest in the Sarsang Block in northern Kurdistan.

• Revenue increased 61% during the first nine months of 2022 and 32% for the third quarter 2022 from comparable periods in 2021. The increase is due primarily to an increase in realized oil price.

• Gross Production in 2022 was in line with prior year, averaging 29.8k bopd in the first nine months of 2022 and 30.1k bopd for the third quarter 2022.

• The new 25k bopd facility on Swara Tika achieved first oil in September 2022 and is currently producing approximately 18k bopd.
  • 5 wells drilled during 2021 and 2022 have been tied-in to the new facility and we are currently optimizing well productivity to reach full production capacity.
  • We drilled and completed the ST B8 well in August, which will add production to the new 25k bopd facility in late March 2023. Initial testing indicates potential production of over 5k bopd from the Kurra Chine B reservoir.
  • Work on additional facility enhancements, including the amine system (which allows HKN to utilize natural gas as fuel) and water handling, will continue through 2023.

• HKN received 8 payments for oil sales during the first nine months of 2022, with total cash proceeds of

$248.5 million (net to HKN). We have received payments for oil sales an average of 77 days after invoice during 2022.

• HKN amended its oil sales agreement with the KRG effective September 1, 2022.
  • The amended agreement sets the price for Sarsang crude with reference to the market price realized by the KRG for the Kurdistan blend (KBT), rather than the Dated Brent price.
  • Sarsang crude will earn a premium to KBT due to higher API and lower sulfur.
  • The amendment also establishes terms for export via pipeline directly from the Sarsang Block boundary. This will ultimately allow for the export of over 90% of Sarsang crude entirely through pipelines and significantly reduce the use of trucks for oil transport.
• Cash balance plus short-term U.S. Treasury investments on 30 September 2022 was $142.8 million, including restricted cash of $10.6 million. Payment for June oil sales of $39.4 million (net to HKN) was received in October.

• The 3D seismic acquisition program covering the western half of Swara Tika concluded in Q3 2022 and we are currently processing and evaluating the acquired data.
• In August 2022 HKN declared and paid $168 million in dividends.