Operational Update - Benriach Exploration Well

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.

19 June 2023

Kistos Holdings plc

("Kistos" or "the Company" and, together with its subsidiaries, "the Group")

Operational Update on the P.2411, Benriach Exploration Well

Kistos (LSE: KIST), the low carbon intensity hydrocarbon producer pursuing a strategy to acquire assets with a role in energy transition, announces the conclusion of exploration drilling on the Benriach well ("the well"), West of Shetland. The well encountered gas bearing sands in the target Royal Sovereign formation. However the discovered resource is expected to be sub-commercial.  The well has been drilled ahead of schedule and the final cost is expected to be within previous guidance. Kistos Energy Limited holds a 25% non-operated working interest in licence P.2411, partnered with TotalEnergies ("operator", 50%) and Rockrose Energy (25%).

The Transocean Barents rig was mobilised from Olen, Norway and spud the well on 21 March. A total measured depth of ~4,400 metres was reached, and an extensive data acquisition programme has been conducted. This confirmed the presence of gas-bearing sands in the target Royal Sovereign formation. Analysis of the acquired data will now be undertaken by the operator.

Highlights

·    Gas bearing reservoir confirmed in the Royal Sovereign formation

·    Excellent operational performance by the Transocean Barents rig, resulting in completion of activities ahead of schedule.

·    Zero Lost Time Incidents / First Aid Cases reported by either staff or contractors to date.

·    Extensive data acquisition programme completed, including rotary sidewall cores, full wireline coverage, live pressures and fluid samples.

Andrew Austin, Executive Chairman of Kistos, said:

"The operational performance has been excellent, and I would like to thank TotalEnergies and the team on the Transocean Barents rig, who drilled the well safely and efficiently. Kistos remains committed to bringing additional gas volumes through the Shetland Gas Plant to add shareholder value and contribute towards domestic energy security, and we look forward to providing further updates to the markets in due course."

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.

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 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 

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