REG - Kistos Holdings PLC - Trading Statement and Operational Update

Kistos HoldingsAnnouncement

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RNS Number : 0749O  Kistos Holdings PLC  08 January 2026

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.

 

8 January 2026

 

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

 

Trading Statement and Operational Update

 

 

Kistos (LON: KIST), an independent energy company focused on unlocking value
within its existing portfolio and through value-accretive M&A, is pleased
to provide the following unaudited trading and operational update ahead of its
results for the year ended 31 December 2025.

 

Value accretive M&A activities

 

·    Kistos entered into a binding agreement to acquire a 5% working
interest in Block 9 (Occidental as operator) and a 20% working interest in
Blocks 3 & 4 (CCED as operator) in Oman from Mitsui E&P Middle East
B.V. (the "Oman Acquisition"), with an effective date of 1 January 2025 (the
"Effective Date"), as announced on 9 December 2025. Completion of the Oman
Acquisition is subject to customary governmental and regulatory approvals and
partner consents. Further announcements will be provided in due course, upon
completion of the Acquisition, including any information on completion
mechanics and the financial impact of the transaction on the Company.

·    Expected to add 25.6 mmboe (operator estimates) of 2P reserves net to
Kistos as at the Effective Date, with a valuation of approximately $5.80/boe
of 2P reserves.

 

Production and reserves

 

·    2025 proforma((1)) exit production rate was 22,700 boepd, including
Oman interests and augmented by the ramp-up of two of the six Balder Phase V
wells

·    Actual production for 2025 averaged 9,000 boepd at the top end of
guidance (8,000 - 9,000 boepd)

·    Year-end proforma net 2P reserves estimated to be 49 mmboe (Company
estimate)

·    FY26 proforma production guidance remains at 19,000 boepd - 21,000
boepd

 

Financial

 

As at 31 December 2025:

 

·    Cash, including near-cash, of $199 million ((2)), following receipt
of $75 million in tax rebates in December 2025 relating to the Company's
Norwegian assets (the anticipated receipt, attributable to activity in 2024,
which was noted in the Company's Interim Results)

·    Tax rebates receivable of approximately $28 million in respect of net
expenditure in Norway during the 2025 calendar year payable in December 2026

·    Adjusted net debt((3)) of approximately $81 million (representing
cash and near-cash equivalents, net of the carrying amount of outstanding bond
debt of $280 million)

 

(1) Proforma figures include production from the Oman Acquisition. The
acquisition is expected to complete in the first quarter of 2026.

 

(2) Non-IFRS measure. Includes $28 million of near-cash, assuming receipt of
the 2025 Norwegian tax rebate as at 31 December 2025. A further $22 million is
maintained in escrow for standard credit and decommissioning arrangements.

 

(3) Non-IFRS measure. Adjusted net debt is a measure that the management team
believes is useful as it provides an indicator of the Group's overall
liquidity. It shows the impact on net debt as if the 2025 Norwegian tax rebate
of approximately $28 million had been received as at 31 December 2025 and is
defined as cash and cash equivalents, including restricted cash, less the
carrying amount of outstanding bond debt.

 

Operational

 

·    Following the start-up of the Jotun FPSO in Norway and ramp-up of the
14 Balder Future wells, total Balder area production exceeded 11,000 boepd
(net) in September.

·    A Final Investment Decision (FID) on Balder Phase VI was taken in
2025 to develop circa 1.5 mmboe (net), which will be drilled in 2026.

·    The first phase of the Balder Next project has now been sanctioned
and consists of the debottlenecking at Jotun FPSO to increase production
capacity in addition to the drilling of new production wells targeting
additional reserves of approximately 3.6 mmboe (net). The subsequent phase
will include the decommissioning of the Balder FPU in 2028, with preparation
work starting in 2026, which will significantly reduce the operating costs of
delivering hydrocarbons from the Balder area.

·    Serica Energy is anticipated to assume operatorship of the Greater
Laggan Area from TotalEnergies in the first quarter of 2026. This change
offers significant organic growth potential and opportunities to extract
near-term value from infill drilling and the development of further
third-party tie-backs to the Shetland Gas Plant.

·    Uptime substantially improved on Q10-A asset in the Netherlands in H2
2025, with production efficiency at circa 97%, following an unplanned extended
outage at the Taqa-operated P15 tieback facility, which significantly impacted
our ability to deliver gas into the network.

·    Work has commenced on returning the Hole House gas storage facility
to service following a FID in September. This will increase our gas storage
capacity by 63% during the course of the next two years.

 

Andrew Austin, Executive Chairman of Kistos, commented:

 

"Kistos again delivered growth in 2025. We successfully executed on all four
of our stated priorities: achieving Balder Future first oil, meeting the
higher end of our full-year production guidance (8,000-9,000 boepd),
continuing to convert 2C resources to 2P reserves, and executing a
value-accretive M&A transaction while continuing to invest in our existing
asset base.

 

The agreement to acquire interests in Block 9 and Blocks 3 & 4 in Oman
represents a material step for Kistos. This acquisition geographically
diversifies our portfolio beyond the North Sea and provides exposure to
high-quality onshore assets with significant growth potential. Completion is
expected in the first quarter of 2026, and we are well advanced in preparation
for the integration of these world-class assets into our portfolio.

 

Operationally, the successful start-up of the Jotun FPSO and Balder Future
wells drove Balder area production above 11,000 boepd (net) in September,
whilst the ramp-up in late December of the first two of six planned Balder
Phase V wells means we can look forward to maintaining high production rates
going forward. We also sanctioned Balder Phase VI and the first phase of
Balder Next, which will enhance capacity, reduce operating costs, and add
meaningful reserves.

 

In the UK, the anticipated transition of operatorship of the Greater Laggan
Area in early 2026 offers near-term opportunities for infill drilling and
tie-backs, and we commenced work to return the Hole House gas storage site to
active service, increasing capacity by 63% over the next two years.

 

In the Netherlands, uptime at Q10-A improved to ~97% in the second half
following earlier challenges with the third-party tieback facility.

 

Financially, Kistos remains robust. Year-end cash, including near-cash, stood
at $199 million, including Norwegian tax rebates, while adjusted net debt was
approximately $81 million. Our balance sheet strength is underpinned by our
ability to fund further growth opportunities, maintain flexibility, and
continue to enhance shareholder value.

 

Looking ahead, our priorities for 2026 are clear:

·    Complete and integrate the Oman acquisition;

·    Work with our partner Vår Energi to deliver the next phases of the
Balder Area development;

·    Unlock organic growth in the Greater Laggan Area; and

·    Enhance our UK gas storage assets, which are material to the
country's energy security.

 

We continue to focus on further near-term value accretive M&A
opportunities in both the North Sea and MENA regions that enhance the group
and shareholder value."

 

 

- ENDS -

 

 

Dr Richard Benmore, Non-Executive Director of Kistos, with a Bachelor's,
Master's 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
 FID           Final Investment Decision
 FPSO          floating production, storage, and offloading vessel
 FPU           floating production unit
 mmboe         millions of barrels of oil equivalent

 

 

Contacts

 

 Kistos Holdings plc                                               via Hawthorn Advisors

 Andrew Austin

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

 James Sinclair-Ford / Freddie Wooding / Mark Murphy / Sam Elder

 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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