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Kistos Holdings plc noted an announcement from Var Energi ASA, the operator of the Balder and Ringhorne fields, confirming the upgrade of the Joutun FPSO is 90% complete and first oil is now anticipated by the end of Q4 2024. Due to the structure agreed upon through Kistos's acquisition of Mime Petroleum A.S. in 2023, the contingent consideration payable to Mime Petroleum bondholders will be reduced if first production is not achieved until 2025.
| Date | 13 Feb 2024 |
| Time | 07:00:04 |
| Category | Corporate updates |
| ID | 9461C |
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.
13 February 2024
Kistos Holdings plc
("Kistos" or "the Company")
Balder Field Operational Update
Kistos (AIM: KIST), a joint venture partner in the Balder and Ringhorne oil and gas fields in Norway, notes the announcement made this morning by Var Energi ASA ("the Operator"), confirming that the upgrade of the Joutun FPSO is 90% complete and that first oil is now anticipated to be the end of Q4 2024.
Kistos is encouraged by recent activity, in particular the progress the Operator has made in working to convert more of the established 2C resources into sanctioned reserves through the ongoing drilling programme. The Company will continue to update the market in line with the Operator.
In the event that first production is not achieved until 2025, due to the structure agreed upon through the acquisition of Mime Petroleum A.S. in 2023, the economics of the acquisition mitigate any effects of a delay by reducing the contingent consideration payable by Kistos to the Mime Petroleum bondholders.
Enquiries
|
Kistos Holdings plc Andrew Austin, Executive Chairman
|
via Hawthorn Advisors |
|
Panmure Gordon (NOMAD, Joint Broker) James Sinclair-Ford / Dougie McLeod
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Tel: 0207 886 2500 |
|
Berenberg (Joint Broker) Matthew Armitt / Ciaran Walsh
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Tel: 0203 207 7800 |
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Hawthorn Advisors (Public Relations Advisor) Henry Lerwill / Simon Woods
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Tel: 0203 745 4960 |
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Camarco (Public Relations Advisor) Billy Clegg |
Tel: 0203 757 4983 |
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).