REG - Kistos Holdings PLC - Acquisition Completion of Gas Storage Assets

Kistos HoldingsAnnouncement

23/04/2024 07:00

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RNS Number : 6540L  Kistos Holdings PLC  23 April 2024

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) (UK MAR). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

23 April 2024

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

Completion of Acquisition of UK Onshore Gas Storage Assets

 

 

Kistos (LSE: KIST), is pleased to announce the completion of the acquisition
of 100% of the share capital of EDF Energy (Gas Storage) Limited from EDF
Energy (Thermal Generation) Limited (the "Transaction"), further to its
announcement on 20 February 2024. The assets acquired comprise of two gas
storage facilities onshore in the UK, Hill Top Farm ("Hill Top") and Hole
House Farm ("Hole House"), for a total consideration of £25 million (from
existing cash resources) for the Transaction.

 

·    Following the approval of Kistos by the government under the National
Security and Investment Act (NSIA), the transaction marks Kistos' entry into
the gas storage sector providing business diversity to its upstream portfolio.

 

·    Hill Top's working gas capacity is 17.8 million therms, with an
ongoing programme to increase this volume to 21.2 million therms in the short
term.

 

·    Hill Top currently accounts for 3.1% of the UK's total available
onshore gas storage capacity and, due to the fast cycle nature of the
facility, can deliver up to 11% of the UK's flexible daily gas capacity if
called upon.

 

·    The Hole House facility, at which operations have been suspended
since 2018, provides an option to increase the Company's proportion of the
UK's total onshore gas storage materially with reactivation. Delivering a plan
to get these facilities back online is a priority post completion.

 

·    As the UK generates increasing amounts of electricity from
intermittent renewable sources, the times when fast-cycle storage assets are
required to balance the system are also set to increase. This provides the
basis for gas storage assets to be a key pillar of the energy transition.

 

·    Both facilities have the potential to be repurposed for future energy
storage uses, including the storage of compressed air or hydrogen, and concept
studies are underway.

 

·    Kistos has assumed operatorship of both sites.

 

 

 

Commenting on the acquisition, Andrew Austin, Kistos' Executive Chairman,
said:

 

"We look forward to working with the existing team with a view to maximising
the value-accretive opportunities these gas storage facilities present,
establishing Kistos' presence across the energy value chain with a foothold in
the midstream market. Over the longer term, we will also be evaluating our
options to further expand operations via other energy storage sources such as
compressed air or hydrogen."

 

 

Enquiries

 

 Kistos Holdings plc                           via Hawthorn Advisors

 Andrew Austin / Peter Mann

 Panmure Gordon (NOMAD, Joint Broker)          Tel: 0207 886 2500

 James Sinclair-Ford / Dougie McLeod

 Berenberg (Joint Broker)                      Tel: 0203 207 7800

 Matthew Armitt / Ciaran Walsh

 Hawthorn Advisors (Public Relations Advisor)  Tel: 0203 745 4960

 Henry Lerwill / Simon Woods

 Camarco (Public Relations Advisor)            Tel: 0203 757 4983

 Billy Clegg

 

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 undertaken a
series of transactions including the acquisition of a portfolio of highly cash
generative natural gas production assets in the Netherlands from Tulip Oil
Netherlands B.V. in 2021. This was followed in July 2022, with the acquisition
of a 20% interest in the Greater Laggan Area (GLA) from TotalEnergies, which
includes four producing gas fields and a development project. In May 2023,
Kistos completed its third acquisition, acquiring the total share capital of
Mime Petroleum and its Norwegian Continental Shelf Assets. These comprise a
10% stake in the Balder joint venture spanning Balder and Ringhorne oil
fields.

 

Kistos is a low carbon intensity gas producer with Estimated Scope 1 CO₂
emissions from its operated activities offshore of less than 0.01 kg/boe in
2022 (excluding necessary flaring during drilling campaigns).

 

www.kistosplc.com (http://www.kistosplc.com)

 

ENDS

 

 

 

 

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