REG - Kistos Holdings PLC - Hill Top Gas Storage Update

Kistos HoldingsAnnouncement

28/06/2024 07:00

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RNS Number : 2524U  Kistos Holdings PLC  28 June 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.

 

28 June 2024

 

 

Kistos Holdings plc

 

("Kistos" or the "Company")

 

Kistos increases Hill Top working gas capacity by 24%

 

 

Kistos (LSE: KIST), the low carbon intensity energy producer pursuing a
strategy to acquire assets with a role in energy transition, is pleased to
announce the positive results of a soft cycling relaxation trial completed at
its Hill Top Farm gas storage facility. The trial, conducted at the start of
May, and overseen by independent geotechnical experts, has confirmed the
ability to increase 'working gas' capacity by 24% from 17.8 million to 22
million therms, an increase of 4.2 million therms, which is expected to
significantly increase the revenue from both intrinsic seasonal trades and
extrinsic trading.

 

This conversion of 4.2 million therms from cushion gas to working gas brings
the Hill Top facility in line with original design parameters and will allow
for the gas to be sold by Kistos at an optimal time in order to maximise
intrinsic revenues, whilst our trading partner will aim to capture additional
upside from market-driven price volatility.

 

Whilst this is the first study undertaken since the acquisition of the Hill
Top Farm and Hole House Farm facilities from EDF Energy (Gas Storage) Limited
earlier this year, the trial represents the fifth phase of a project which was
initiated under EDF ownership, and  demonstrates the opportunity to realise
significant near and medium term upside from the assets.

 

Kistos is now evaluating the economics of recommissioning the Hole House
facility. Hole House was developed specifically for gas storage and was
operational from 2001 through to 2018 when a period of re-brining the caverns
commenced. Three out of the total four caverns are now brine filled, with
cushion gas sold to market. Hole House requires approximately one-third as
much cushion gas as Hill Top for the same amount of working gas. This study is
due to complete during H2 2024.

 

 

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

 

"Our entry into the gas storage market is providing immediate returns and what
we believe to be significant near-term upside for the Group. This study has
quickly demonstrated the ability to increase capacity and revenue from Hill
Top and further increases its importance as one of the most flexible
"batteries" in the UK.

 

As we seek to further maximise the value of the assets, we are undertaking an
economic review of the opportunity to recommission the Hole House caverns,
which operated up to 2018 with 17.8mm therms of working gas. The results of
this, if positive, could offer the potential for another material increase in
revenue from these facilities."

 

 

Change of Name of Nominated Adviser and Broker

 

The Company also announces that its Nominated Adviser and Joint Broker has
changed its name to Panmure Liberum Limited following completion of its own
corporate merger.

 

Enquiries

 

 Kistos Holdings plc                           via Hawthorn Advisors

 Andrew Austin / Peter Mann

 Panmure Liberum (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 Group's assets include
interests in the Dutch and UK North Sea, offshore Norway and onshore
Netherlands, as well as onshore gas storage assets in Cheshire, UK. Our
acquisitions in recent years bring geographical and operational
diversification, and significantly increase the Group's reserves and resources
base.

 

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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