Operational Update

RNS Number : 5978U

Kistos Holdings PLC

29 March 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310).

Kistos Holdings plc

("Kistos" or the "Company")

Operational update

Kistos (LSE: KIST), the low carbon intensity oil and gas producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to provide an update on its drilling activities in the Netherlands and the United Kingdom.

United Kingdom

The Benriach exploration well, located on block 206/05c (Kistos 25%) West of Shetland and operated by TotalEnergies E&P UK, has been spudded by the Transocean Barents. The operator estimates it is targeting P50 prospective resources of 638 Bcf (160 Bcf or 28mmboe net to Kistos). The well is expected to complete in Q3 2023. The dry hole post-tax cost net to Kistos is forecast to be ~£2.5 million as a result of Kistos' tax paying position and the enhanced investment allowances from the Energy Profits Levy.

Netherlands

After arriving on location at the Q10-A gas field (Kistos 60%) in November 2022, the Valaris 123 rig recently departed after safely completing its work programme.  The results of the campaign were mixed. This was due to mechanical issues arising from utilising the existing well stock rather than reservoir performance issues. The Kistos technical team, with the assistance of external consultants, is undertaking a detailed evaluation of the results and future production enhancement options.

Future work programmes are being considered and could include the drilling of further Zechstein clastics wells in 2024 in combination with development drilling at the Orion oil field. Engineering design work has now been completed to enable the installation of two more risers on the platform, which would allow it to host additional wells. The Orion field continues to progress through the Concept Select Phase, which Kistos is undertaking with the assistance of Rockflow Resources.

Andrew Austin, Kistos' Executive Chairman, said:

"We are excited that the Benriach well is underway. It is an important milestone for the Company with the potential to add significant reserves. I look forward to updating stakeholders with the results of the well in due course.

I would like to congratulate our team in the Netherlands on the safe completion under difficult weather conditions of the operational work programme. The process of fully evaluating the results of the campaign is ongoing, and will inform the planning of future work programmes, including the potential operational synergies with the Orion oil field development."

Enquiries

Kistos Holdings plc Andrew Austin	via Hawthorn Advisors
Panmure Gordon (NOMAD, Joint Broker) John Prior / James Sinclair-Ford	Tel: [phone]
Berenberg (Joint Broker) Matthew Armitt / Ciaran Walsh	Tel: [phone]
Hawthorn Advisors (Public Relations Advisor) Henry Lerwill / Simon Woods	Tel: [phone]
Camarco (Public Relations Advisor) Billy Clegg / Georgia Edmonds	Tel: [phone]

Notes to editors

Kistos plc was established to acquire and manage companies in the energy sector engaging in the energy transition trend. The Company has acquired Tulip Oil Netherlands B.V., which has a portfolio of assets, including profitable, highly cash generative natural gas production, plus appraisal and exploration opportunities. In addition, Kistos acquired a 20% interest in the Greater Laggan Area (GLA) from TotalEnergies E&P UK  in July 2022. The GLA includes four producing gas fields and a development project.

Kistos is a low carbon intensity gas producer. The Q10-A gas field in the Dutch North Sea (60% operated working interest) recorded an estimated Scope 1 carbon emissions intensity of 1g CO₂e/boe in the first half of 2022. This compares to an industry average of 22kg CO₂/boe for gas extracted from the UK continental shelf. The Q10-A normally unmanned installation is located approximately 20 km from the Dutch shore. It is powered sustainably via wind and solar power and is remotely operated, limiting offshore visits, which are conducted by boat.

https://www.kistosplc.com  

ENDS

 

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