Completion of Acquisition and Trading Update

RNS Number : 3652Z

Kistos PLC

21 May 2021

 

21 May 2021

Kistos plc

("Kistos" or the "Company")

Completion of Acquisition, Commitment to Net Zero Scope One Emissions from Completion and Trading Update

Kistos, the low carbon gas producer, is pleased to announce   the completion of the acquisition of the entire issued and outstanding share capital of Tulip Oil Netherlands B.V. on the terms set out in the Company's admission document dated 21 April 2021.

Kistos has committed to ensuring its Scope One Emissions are net zero from completion. The producing asset Q10-A has a uniquely low carbon footprint given the platform is powered by wind and solar energy, averaging 0.013kg CO ₂ e/Boe since first gas, against a UK North Sea average of 22kg CO ₂ e/Boe. We will be working with independent auditors to monitor and ensure compliance with the objective.

The effective date of the acquisition was 1 ^st January 2021 and production in the year to date has been in line with expectations, whilst realised gas prices have been higher than those assumed in the Admission document. Group cash at bank on closing is £46.8 million implying net debt of £82.2 million . The Board of Kistos is also pleased to announce that it has sanctioned, subject to partner approval, the appraisal of the Q11-B discovery as well as a drilling and workover campaign on the Q10-A field. Drilling activities are expected to commence in the second half of 2021.  The primary objectives are to appraise additional horizons in the Q10-A area whilst enhancing potential production rates with the sidetrack of the Q10-A04 well and workover of the Q10-A06 well.

Andrew Austin, interim CEO, said  

"We are very excited for the future of Kistos, with a proven low cost  production base from the Q10-A field and two further appraisal wells planned this year , we look forward to extending our reserves base and increasing our presence in the Q Block core area . We welcome the team at Tulip on board. They have shown great professionalism and ability in the way they have led activity in the Q-Block area to date. We look forward to working together as we continue to grow Kistos into a company which can play a role in the broader energy transition".

ENDS 

Enquiries:

Kistos plc Andrew Austin	c/o Camarco Tel: [phone]
Panmure Gordon Nick Lovering / Atholl Tweedie / Ailsa MacMaster	Tel: [phone]
Camarco Billy Clegg / James Crothers	Tel: [phone]

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 production, plus appraisal and exploration opportunities.  The company has 19.95 mmboe of 2P reserves and 99.1 mmboe contingent resources at the transaction effective date.

The Q10-A gas field in the Dutch North Sea (60% operated working interest) recorded a Scope 1 carbon emissions intensity of 13g CO₂e/boe since inception, compared to an industry average of 22kg CO₂/boe for gas extractions from the UK continental shelf.  The Q10-A normally unmanned installation is located approximately 20 km from the Dutch shore, is powered sustainably via wind and solar power and is remotely operated, limiting offshore visits, which are conducted by boat.

https://kistosplc.com/  

 

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