REG - Kistos Holdings PLC - Operational Update

Kistos HoldingsAnnouncement

29/03/2023 07:00

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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                           via Hawthorn Advisors

 Andrew Austin

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

 John Prior / James Sinclair-Ford

 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 / Georgia Edmonds

 

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 CO(2)e/boe in the first half of 2022. This
compares to an industry average of 22kg CO(2)/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 (https://www.kistosplc.com)

ENDS

 

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