REG - Kistos Holdings PLC - Development Approval for Victory Gas Field

Kistos HoldingsAnnouncement

18/01/2024 07:00

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RNS Number : 0733A  Kistos Holdings PLC  18 January 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.

 

18 January 2024

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

Development Approval for Victory Gas Field & End of Year Cash Position

 

Kistos (AIM: KIST), a joint venture partner in the Greater Laggan Area ("GLA")
and co-owner of the Shetland Gas Plant, notes the North Sea Transition
Authority (NSTA) decision to grant development and production consent for the
Victory Gas Field, operated by Shell UK Limited. This follows an environmental
impact assessment by the Offshore Petroleum Regulator for Environment and
Decommissioning ("OPRED").

 

The Victory Gas Field is situated approximately 29 miles northwest of the
Shetland Islands and is estimated to contain a P50 recoverable resource of 179
billion cubic feet, equivalent to approximately 7 per cent of the UK's annual
natural gas consumption. The gas produced from Victory will be developed as a
single subsea tie-back well to GLA infrastructure and transported to the
Shetland Gas Plant. The field is expected to reach first gas in the middle of
the decade and will see peak production levels of circa 150 million cubic feet
of gas per day.

 

Production from the Victory field will significantly increase throughput at
the Shetland Gas Plant, further extending the life of the Greater Laggan Area
whilst reducing overall unit operating expenditure.

Kistos is pleased to update shareholders on the end of 2023 calendar year with
cash and near-cash of approximately €275 million (including estimated tax
receivables).

 

Andrew Austin, Executive Chairman of Kistos, commented:

 

"We are delighted by the confidence of Shell in sanctioning this project and
the support of the British government. As partners in the Shetland Gas Plant,
we are encouraged that the future of the installation is further underpinned
by more hydrocarbons being produced through this quality infrastructure.
Kistos will benefit, along with the other partners, through more parties
sharing the infrastructure and reducing opex while extending the life of the
facility.

 

"As an active exploration, development, and production participant in the
Greater Laggan Area, we look forward to working alongside our partners to
support this important development for the UKCS and the West of Shetland
region."

 

Enquiries

 

 Kistos Holdings plc                           via Hawthorn Advisors

 Andrew Austin, Executive Chairman

 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).

 

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

 

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