Sequa Petroleum NV: Convertible Bonds

Sequa Petroleum N.V. USD 300,000,000 5.00 per cent Convertible Bonds due 2020 (of which USD 204,400,000 in principal amount remain outstanding) (ISIN: XS1220076779) issued by the Company in April 2015 ("Bonds")

Sequa Petroleum N.V. ("Company") has notified the Bond Trustee that there will be a delay in payment of interest.

The Company's funding is provided by Sapinda Invest Sarl and Sapinda Asia Limited, through convertible loan facilities ("Loans"), totalling USD 62.5M, of which USD 7.6M has been drawn. The Company has drawdown requests outstanding for the coupon now due, and has received confirmation that these drawdown requests will be fulfilled in the near term.

A potential default has occurred under the Bonds of failure to pay interest as required under article 10 (a) under the Terms and Conditions of the Bonds, and the failure to remedy has continued for 14 calendar days from 31 October.

The Company has not received instructions from the Trustee to call a formal default, which would be required before the Bonds are immediately due and repayable. The Company currently does not expect to receive any such instructions and to the Company's knowledge, the Trustee has not received written instructions from holders of 25% of the bond or notification of an extraordinary resolution.

By way of update on its ongoing loan funding, the Company has received six drawdowns under the Loans totalling USD 2,633,281 dated between 30 June and 25 October 2016, although these drawdowns have not matched the timing or amounts requested by the Company.

The Company will provide an update following the receipt of further information.

Contacts:

Jacob Broekhuijsen, Chief Executive Officer

+44(0)203-728-4450 or info@sequa-petroleum.com