REG - Kistos Holdings PLC - Trading Statement and Production Update

Kistos HoldingsAnnouncement

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RNS Number : 6731Y  Kistos Holdings PLC  10 September 2025

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.

 

10 September 2025

 

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

 

Trading Statement and Production Update

 

 

Kistos (LON: KIST), an independent energy company focused on generating value
across the upstream and midstream markets, provides a trading and operational
update ahead of its half-year results for the period ended 30 June 2025.

 

Balder Ramp-Up

 

·    Balder Future has reached peak production

o  The Jotun FPSO was brought onstream on 22 June 2025

o  All 14 subsea production wells are now online and producing in line with
expectations

o  Production from the Jotun FPSO is now over 80,000 barrels of oil
equivalent per day (boepd), adding to the approximately 30,000 boepd from the
Balder FPU and Ringhorne facilities. This brings the total output for the
Balder Area to more than 110,000 boepd (gross), with Kistos holding a 10%
stake in the licence

 

·    Balder Phase V is ongoing

o  Six new multi-branch subsea production wells are underway, with expected
production rates and reserves equivalent to the wells installed within the
Balder Future project

o  Two of the Phase V wells are expected to come on stream in Q4 of this
year, with the remaining wells being completed during 2026

 

·    Balder Phase VI is being progressed following the positive investment
decision announced on 18 June 2025

o  The project consists of a single multi-lateral well tied back to the Jotun
FPSO via the installation of a new subsea template and flowline

o  The project will target reserves of approximately 15 mmboe (gross), with
start-up expected by the end of 2026 and payback in less than one year

 

 

Q10-A, GLA & GAS STORAGE

 

·    Q10-A production was affected during the first half of 2025

o  Aside from natural decline, a planned shutdown of the TAQA-operated P15-D
platform overran for longer than expected, although this will be partially
offset by flush production post start up, which was achieved on 16 July 2025

 

 

·    GLA production during the period fell in line with management's
expectations

o  Imminent start-up at the Shell-operated Victory gas field is due to
provide significant OPEX savings for the GLA partners, with increased gas
throughput at the SGP

o  TotalEnergies maintains its 40% stake in the GLA, following Prax going
into administration

o  Kistos remains confident that TotalEnergies will continue to operate the
assets responsibly and efficiently

 

·    A Final Investment Decision (FID) on Hole House re-instatement is
anticipated late in Q3 2025. If positive, it is expected to increase working
capacity by a further 63%. A further announcement will be made at the point
the FID is made

 

 

Corporate guidance

 

·    Full-year average daily production guidance of 8,000 - 9,000 boepd
reaffirmed with daily production reaching 16,000 boepd on 8 September

 

·    Cash at 30(th) June 2025 was $104 million (of which $20 million is
currently restricted), compared to the $143 million cash at 31 December 2024,
reflecting significant capital expenditure on the final stage of the Balder
Future project

 

·    Net debt* at the end of the period stood at $86 million.

 

*Cash and cash equivalent, restricted funds and current tax receivables less
the face value of outstanding bond debt.

 

 

Andrew Austin, Executive Chairman of Kistos, commented:

 

"With our partner Var, we set out a very clear priority at the beginning of
the year to deliver the Balder Future development project. Not only have we
achieved first oil by the half-year-end, but we have also accelerated the
production ramp-up to reach peak production well ahead of schedule.

 

Total Group production hit 16,000 boepd on the 8(th) September. The additional
8,000 boepd (net) that Balder Future is now contributing adds substantial
near-term production and, with the installation of the Jotun FPSO and
associated infrastructure, further near-term development of the Balder Area is
now ongoing, unlocking additional value at a low cost with greater certainty."

 

"Our desire for value-accretive acquisitions remains. Our M&A remit covers
areas outside of the North Sea; however, we are committed to only pursuing
opportunities that provide a good balance to our current portfolio, at the
right price and on terms that are accretive to Kistos shareholders."

 

 

 

- ENDS -

 

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 40 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

 

 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
 boe           barrels of oil equivalent
 boepd         barrels of oil equivalent per day
 FPSO          floating production, storage, and offloading vessel
 FPU           Floating Production Unit
 GLA           Greater Laggan Area
 kboepd        thousand barrels of oil equivalent per day
 mmboe         millions of barrels of oil equivalent
 SGP           Shetland Gas Plant

 

Enquiries

 

 Kistos Holdings plc                                   via Hawthorn Advisors

 Andrew Austin

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

 James Sinclair-Ford / Freddie Wooding / 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

 

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