Kistos plc

("Kistos" or the "Company")

Value Creation Plan

The Company announces the intention to establish a new Value Creation Plan ("VCP"), the primary objective of which is to motivate key members of the Company's executive directors to achieve exceptional levels of performance and deliver further returns for Kistos' shareholders.

The terms of the VCP would give participants a right to share in a pool of Ordinary Shares that has a value equal to 15% of the value created for shareholders over a 5-year measurement period to 21 May 2026 ("Measurement Period") subject to a hurdle of 100% total shareholder return ("TSR") over that period (equivalent to 14.9% TSR p.a.) from a reference starting price of 242 pence (being the average closing share price in 2021).

Once granted, awards under the VCP will vest in respect of the higher number of Ordinary Shares as is calculated in year 3, year 4 and year 5 of the Measurement Period. There is an overall cap of £25 million for each participant in the plan and the maximum potential dilution is 9.5%, which is below the limit contained in Investment Association guidelines.

The number of Ordinary Shares under each Award will be determined at the end of the Measurement Period. It is intended that the following executive directors will participate in the VCP and will hold the following percentage entitlements to the growth in value:

In the event that there are no new joiners during the Measurement Period, it is the Company's intention to redistribute any unallocated portion of the pool to remaining participants on a proportional basis.

Enquiries:

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. The Company has 19.5 MMboe of 2P reserves and an additional 102.1 MMboe of contingent resources. On 31^st January 2022, Kistos announced that it had conditionally agreed to acquire a 20% interest in the Greater Laggan Area from TotalEnergies. On completion, this transaction is expected to increase Group production to ~12,000 boe/d and add 2P reserves of 6 MMboe.

Kistos is a low carbon producer. The Q10-A gas field in the Dutch North Sea (60% operated working interest) has recorded a Scope 1 carbon emissions intensity of 13g CO₂e/boe since inception. This compares to an industry average of 22kg CO₂/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://kistosplc.com/