Completion of Acquisition and Trading Update
21 May 2021
("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 CO2e/Boe since first gas, against a UK North Sea average of 22kg CO2e/Boe. We will be working with independent auditors to monitor and ensure compliance with the objective.
The effective date of the acquisition was 1st 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".
c/o Camarco Tel: 0203 757 4983
Nick Lovering / Atholl Tweedie / Ailsa MacMaster
Tel: 0207 886 2500
Billy Clegg / James Crothers
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 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.