REG - Kistos Holdings PLC - Jotun FPSO First Oil

Kistos HoldingsAnnouncement

Mon 07:16

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RNS Number : 9351N  Kistos Holdings PLC  23 June 2025

 

23 June 2025

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

 

Jotun FPSO First Oil

 

 

Kistos (LON: KIST), an independent energy company focused on generating value
across the upstream and midstream markets, notes the announcement made today
by Vår Energi, the operator of the Balder Area, Norway, confirming the start
of production from the Jotun FPSO.

 

 

Andrew Austin, Executive Chairman of Kistos, commented:

 

"First oil from the Balder Future project is a significant milestone for
Kistos. Working alongside our partner in the Balder Area, this provides the
foundation for further incremental value accretion from our interest in
Norway. With production set to ramp up over the next few months, adding 8,000
boepd (net) to our existing 3,000 boepd (net) from the wider Balder Area, peak
production in Norway is expected to exceed 11,000 boepd (net). These low-cost
barrels will notably increase the oil weighting of our portfolio and deliver
significant cashflow.

 

"Utilising the infrastructure now in place, Balder Phase V and the recently
sanctioned Phase VI project will bring new production wells onstream as early
as this year, accelerating the conversion of 2C resources to 2P reserves and
offering fast-track developments to sustain long-term, high-value production.

 

Our entry into Norway, has delivered significant upside for the Company and
its shareholders, for a nominal consideration with significant mitigations put
in place around the timing of the completion of the Balder Future project. It
highlights the importance that we will always place as a management team on
identifying opportunities which offer significant near-term value accretion,
at the right price and on the right terms.

 

 

Full Vår Energi press release below:

 

Sandnes, Norway, 23 June 2025: Vår Energi today successfully started
production through the Jotun FSPO. This marks the start of a new era for the
Balder field in the North Sea, extending the life of the first production
licence, PL001, on the Norwegian Continental Shelf, adding high value barrels
towards 2045 and beyond.

 

By bringing the Jotun FPSO onstream, production is expected, within three to
four months after start-up, to increase by approximately 80 thousand barrels
of oil equivalent per day (kboepd) gross, on top of the current production of
approximately 30 kboepd gross through the Balder FPU and Ringhorne facilities.
The Jotun FPSO will have a low operating cost of around USD 5 per barrel and
estimated gross proved plus probable recoverable reserves from the project at
150 million barrels of oil equivalent (mmboe).

 

"Vår Energi is set for transformative growth in 2025. Together with the
recent start-ups of Halten East and Johan Castberg, this marks a key milestone
in reaching our production target of more than 400 kboepd in the fourth
quarter of this year. Furthermore, with infrastructure and facilities designed
to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide
potential for continued value creation from the area. I wish to extend the
Company's gratitude to the people in the project organisation, our suppliers,
employee representatives and our partner for the strong dedication and
collaborative efforts required in successfully completing this complex
project. Also, the support by the Norwegian authorities has been fundamental,
and much appreciated," said Nick Walker, CEO of Vår Energi.

 

All 14 production wells have been completed and will be brought onstream
during the ramp-up period to reach peak production. Together with the Balder
Phase V project starting up later this year, the project has a payback time of
around two years¹. In addition, with the Jotun FPSO installed as an area
host, Vår Energi is taking necessary steps to add new production through
infill drilling, exploration and tie-back developments with short time to
market.

 

Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway
AS as partner (10%).

 

1.  From production start-up

 

 

- ENDS -

 

 

Contacts

 

 Kistos Holdings plc                                 via Hawthorn Advisors

 Andrew Austin

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

 James Sinclair-Ford / Dougie McLeod / Mark Murphy

 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

 

Glossary

 

 2C resources  those quantities of petroleum estimated, as of a given date, to be potentially
               recoverable from known accumulations by application of development projects,
               but which are not currently considered to be commercially recoverable owing to
               one or more contingencies.
 2P reserves   the sum of proved and probable reserves, denotes the best estimate scenario of
               reserves
 boepd         barrels of oil equivalent
 FPSO          floating production, storage, and offloading vessel

 

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