REG - Kistos Holdings PLC - Successful Appeal - M10/M11 Licence

Kistos HoldingsAnnouncement

21/07/2023 07:00

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RNS Number : 7216G  Kistos Holdings PLC  21 July 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) (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.

 

21 July 2023

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

Reserves & Resources increase by 41% as Appeal is Successful

 

 

Kistos (LSE: KIST), the low carbon intensity hydrocarbon producer pursuing a
strategy to acquire assets with a role in energy transition, is pleased to
announce that further to its announcement on 30 May 2023 it has successfully
appealed against the Netherlands Ministry of Economic Affairs decision not to
extend the term of the M10/M11 licence. This ruling is effective immediately
and the licence is extended by five years. Kistos NL1 B.V. holds a 60%
operated working interest in the licence and is partnered with EBN (40%
working interest).

 

M10/M11 sits in the northern area of the Netherlands North Sea Shelf and is
estimated to contain technically recoverable 2C resources net to Kistos of 174
Bcf or 31.7MMboe. These resource estimates have been independently compiled in
a technical report undertaken by a third party in accordance with the
Petroleum Resources Management System (PRMS) standards for classification and
reporting. Kistos has completed stakeholder mapping in preparation for further
drilling of the field.

 

Kistos will now apply for a permit for an appraisal well, engaging closely
with the local municipalities and stakeholders prior to commencing any
assessment phase planning work.

 

As a result of this positive news, Kistos estimates Group 2P reserves of
36.2MMboe and 2C resources of 72.2MMboe, making the overall Group 2P reserves
plus 2C resources, 108.4MMboe.

 

 

Andrew Austin, Executive Chairman of Kistos, said:

 

"This is very good news both for Kistos and for the Netherlands. It increases
the potential for domestic gas demand to be met with domestic supplies, which
has positive implications for CO2 emissions. Whilst the delay to the M10/M11
project has been frustrating, we are pleased that the right outcome has been
achieved and look forward to working with the local municipalities to obtain
the relevant permits to appraise the field.

 

We continue to work with our partners in all three jurisdictions to mature
further resources to reserves prior to year end."

 

 

For the purposes of UK MAR, the person responsible for arranging the release
of this announcement on behalf of Kistos is Andrew Austin, Executive Chairman.

Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelors, Masters
and PhD in Geosciences and who has been involved in the energy industry for
more than 37 years, has read and approved the disclosure in this announcement.

The Company's internal estimates of resources contained in this announcement
were prepared in accordance with the Petroleum Resource Management System
guidelines endorsed by the Society of Petroleum Engineers, World Petroleum
Congress, American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers.

 

Glossary

 2P reserves   the sum of proved and probable reserves, denotes the best estimate scenario of
               reserves
 Bcf           billion cubic feet
 boe           barrels of oil equivalent
 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.
 MMboe         millions of barrels of oil equivalent

 

 

Enquiries

 

 Kistos Holdings plc                           via Hawthorn Advisors

 Andrew Austin, Executive Chairman

 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

 

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)

 

- ENDS -

 

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