Successful flow test and potential acquisition

RNS Number : 3063K

Kistos PLC

01 September 2021

 

1^st September 2021

Kistos plc

("Kistos" or the "Company")

Successful Vlieland flow test and potential renewable energy acquisition

Kistos (LSE: KIST), the low carbon intensity energy producer pursuing a strategy to acquire assets with a role in energy transition is pleased to provide an update on the initial results of the appraisal of the Vlieland sandstone formation in the Q07 and Q10 blocks, offshore the Netherlands. This was the first stage of our four month drilling campaign.

After encountering the target formation on prognosis at a depth of 1,562 metres TVDss, an 825 metre horizontal section was drilled by the Prospector-1. The Q10-A-04 A well was flow tested for 5 days between 26^th and 31^st August 2021. During this time, a maximum stable rate of 3,200 barrels of oil per day (bopd) was achieved, which was higher than anticipated. The oil will be sold to a local refinery and is good quality with an API of 33°. The well is now shut-in for a pressure build-up and the information obtained, along with reservoir and surface samples taken during the flow test, will be analysed as Kistos prepares a field development plan for this project. Kistos has previously estimated 2C resources for this accumulation of between 23.1 - 67.5 mmboe net. This estimate was independently audited by Sproule and will be refined following review of all the data.

Kistos recognises it is imperative that all hydrocarbon supplies are sourced from fields with the smallest carbon footprint possible. The Company has demonstrated with the design and performance of the existing Q10-A platform that it is capable of keeping emissions to an industry leading minimum. Having confirmed the viability of this discovery in the Vlieland sandstone, we will examine options for developing it to achieve a "best in class" scope 1 and 2 emissions profile.

The Q10-A field is currently shut in while annual planned maintenance is undertaken at the TAQA-operated P15-D facility, through which gas export is currently routed. Production is anticipated to re-start before the end of September. Prior to the shut in production was constrained by compressor issues on the P15-D platform.

On 31^st August, Kistos signed an Agreement with Infinergy and Windcollectief Noord-Holland to enter into exclusive negotiations to acquire Windpark Ferrum. Windpark Ferrum comprises three wind turbines on the TATA-owned site in IJmuiden where Kistos proposes to reroute gas production from Q10-A and build a compression station adjacent to an existing facility. The wind farm can produce up to 7MW of electricity and would enable Kistos to supply a material proportion of the power required by the new facility from a renewable source. This would have the effect of materially reducing the overall carbon emissions of the new plant. The agreement does not require the parties to enter into a transaction and there can be no assurances that one will occur.

Commenting, Andrew Austin, Kistos' Interim CEO, said:

"I am delighted to be able to announce the extremely positive results from the appraisal well in the Vlieland sandstone. This is a great credit to the team who have spent several years believing in the reservoir and planning this activity. We will now look at our options for developing the field, which overlies our existing producing gas field, in the most carbon efficient manner including the use of shore power derived from renewable sources. I look forward to updating our stakeholders on the remainder of the drilling campaign over the coming months.

In the meantime, the signing of the exclusivity agreement on the Ferrum wind farm demonstrates our commitment to the provision of low carbon intensity energy supplies. It complements the gas facility we are seeking to develop at IJmuiden, allowing us to keep emissions as low as possible. This is an exciting prospect for Kistos and we look forward to announcing further progress in the near future. "

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 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.

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/

Dr Richard Benmore, Interim Chairman of Kistos with a Bachelors, Masters and PhD in Geosciences and who has been involved in the energy industry for more than 37 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.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).

Glossary

2C resources	best estimate of contingent resources
2P reserves	the sum of proved and probable reserves, denotes the best estimate scenario of reserves
bbls	barrels of oil
Bcf	billion cubic feet
boe	barrels of oil equivalent
boe/d	barrels of oil equivalent per day
bscf	billion standard cubic feet
contingent 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.
MMbbl	million barrels of oil
MMboe	millions of barrels of oil equivalent
MMcf	millions of cubic feet
MMcf/d	millions of cubic feet per day
MM Nm3/d	millions of normal cubic metre per day
TVDss	true vertical depth sub-sea

 

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