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Material uncertainty on the comlany operating as a going concern. Yikes!
Talk about a reversal
What’s the next catalyst to the share price? I think we will get annual accounts at the end of May however I don’t believe they will read positively. Maybe another acquisition? What are your thoughts ?
Oil and gas firms are being framed as the “devil incarnate” as general election rhetoric ramps up, a top North Sea dealmaker has complained.
Andrew Austin said is firm Kistos Holdings (AIM: KIST) is one of several which has pulled out of deals due to political uncertainty and that the windfall tax is being seen as a “victimless” crime as the UK gears up for an election.
Speaking to The Herald, he said: “Part of the problem is both parties are rightly trying to chase the 18 to 24 year old vote and in their minds climate change and oil and gas companies are the devil incarnate, therefore taxing them is effectively a victimless crime; that’s what’s driving it on both sides of the house.”
Investment ‘off the table’
Mr Austin, who built up his former company RockRose Energy into a £250m business, said committing fresh capital to projects in the North Sea “is definitely off the table” until there’s certainty as to “the Government and the Government’s position”.
There have been four changes to the windfall tax since 2022 under the ruling Conservative government, while Labour, which is leading the polls, has promised a “proper windfall tax” should it win power.
Last month, the CEO of Hartshead Energy told Energy Voice the uncertainty on Labour’s plans have led to it cutting project team jobs.
Meanwhile the party’s pledge – which includes cutting investment allowances while hiking and extending the levy – has led to warnings it will kill off North Sea investment.
Kistos’ partner in the West of Shetland, TotalEnergies, told Energy Voice last year that the uncertainty is impacting potential Final Investment Decisions for their projects in the region.
Mr Austin told The Herald that the windfall tax is not making Shell or BP the victim.
“The victims are the small independents who effectively have become the mantle-holders for the North Sea as the majors and super-majors have exited.
“You’ve seen it with Harbour, with Ithaca with Serica and us. These are the guys that are getting hurt.”
The MM's are being a bit greedy with a 3.93% spread???!!!
Mav - net cash was not 247 million - this was discussed at the time. Think it was worked out that after norwegian tax refunds,we would be 40 net cash
Production came in at 7.4k barrels per day, down from 8.8k in January. The fall is due to production in the Netherlands falling off a cliff, why I have no idea.
Breakdown.
UK (GLA)
Net production from Edradour, Laggan and Tormore was 3442boepd of gas and 234b/d of oil.
Norway
Net production from Balder was 2734 b/d of oil.
Netherlands
Net production from Q10-A was 970 boepd.
aimo dyor
Full year results not to far away, is the market expecting a good set of financials? What are we expecting:
No debt
Increased cash position from Sept interims? Net cash was 247m
Is a dividend too early
Buying back shares has been positive for SQZ with only a £15m buy back - will AA do similar - KIST has way less shares in issue than SQZ
Gas price has been lower so revenues will be impacted?
Has AA being looking at anything beyond the North Sea & Norway
Not too long to find out
Var have announced a small discovery at Ringhorne North. It isn't a licence we have an interest in but just goes to show that there is still potential for more upside in the Balder area.
https://varenergi.no/news/new-oil-discovery-in-the-north-sea/
Ahhh okay see it now on the update section "Key high lights"
"Strong pipeline of development opportunities across
THREE stable JURISDICTIONS in mature basins - Peak production forecast to reach 15,000 boe/d in 2025
Thank you.
Rgds Sft
I don't consider it misleading, the enlarged group is pretty clear to me. All production guidance for each jurisdiction was in last September's presentation...
https://d1ssu070pg2v9i.cloudfront.net/pex/kistos/2023/10/03092620/KIST_Interim-Results-2023-Presentation-final.pdf
dyor aimo etc etc
That's a very misleading and ambiguous RNS imo then; as I was taking the "Enlarged Group" as taking about the Norway assets????
Rgds Sft
Hey NQM,
The way I read the RNS comment: "Mime's share of production from Balder and Ringhorne is expected to be over 2,000 boe/d in 2023. This will increase significantly once the Balder X project is onstream, with production for the enlarged Group expected to be over 15,000 boe/d in 2025 once the Jotun FPSO is onstream"
Is 15,000 boe from Norway i.e. both Balder, Ringhorne AND Balder X (Jotun hooked up and on line)
The adding the NL and West of Shetland gas assets (not sure what the BOE is) correct?
Best rgds Sft
Apologies Surfit, damned auto correct changed your name to Surfing.
Surfing,
Your post said "Baring in mind Mime / Kistos has 10% of expected production estimated once started up 15,000 boe/d"
Do you realise that the figure of 15,000 boepd is not just for Norway but for the enlarged group, the UK, Netherlands AND Norway?
At this stage Balder and Ringhorne are forecast to be at around 10,000 boepd in 2025 and then declining in the following years to 8000 boepd by 2029.
aims dyor etc etc
Doesn’t make sense for a company with 0 US operations to be listed in the US.
I think AA, should consider setting KISTOS up on the USA markets, the London Stock exchange is losing a lot of business and we would get better exposure and investment as an Oil and gas company in the USA. Not sure about the costs of such though??
I would be interested in understanding our liabilities on the additional costs on the Jotun FPSO overun, I am assuming it will be 10% ?
That and the cost of the warrents at 385p, a good deal for MIME now are SP is down to where it is now?
An updated statement RNS Number : 9461C comments about the warrants but does not go into a lot of detail, but it confirms that we move into the fall back option as detailed in the original buy out RNS.
It would be nice to have a cost update, for clarity.
https://www.lse.co.uk/rns/KIST/balder-field-operational-update-0sqij8iccw8256m.html
IMO the MIME take over is going to be are maine income.
If we look at the Benriach West of Shetland (WOS) well not being deemed commercial ( how is the rest of the WOS? for long term returns vs decom costs, the good news is Shells "victory" discovery to tie in to the Total Energies/ Kistos Shetland gas plant) investment standing, the failed drilling in the Netherlands the failed take over attempt and the UK/ NL effects of Wind fall tax FT, the Oil in Norway becomes very significant.
It would also be good to understand investment vs returns ion the EDF Energy (Gas Storage) Limited investment.
I feel that once we get closer to the Jotun departure, the SP will pick up, negative is a further delay.
GLA
Rgds Sft
Kistos management need to do something to stimulate growth and the share price its too stagnant and low!
I’m hopeful this issues at Balder might warrant AA to dig deep and get us a larger holding than 10%. Not sure what it would cost for a further 10 or even 15% from Vär.
Hello all, does any have any thoughts on conducting a review of the Mime merger and its affects positive / negative to Kistos.
With PoO looking to be up in the short to Mid term.
Coupled with Norway being a political and SAFE (excluding russian sabotage) location but tax heavy location and the time risk in meeting real start up dates.
19 Apr 2023 07:00
RNS Number : 6690W, Kistos Holdings PLC. 19 April 2023
In particular the 6milion warrants at 365p:
"The consideration for the transaction is US$1 plus the issue of up to 6 million warrants exercisable into new Kistos ordinary shares at a price of 385p each, which represents a premium of 31.4% based on the last trading date prior to this announcement of 293 pence on 18 April 2023"
The actual costs to KISTOS
"US$120MM of Super Senior bonds, which will attract interest of 9.75% per annum, 4.50% of which is payable in cash and 5.25% of which is payable-in-kind in the form of additional Super Senior bonds. The maturity date of the Super Senior bonds is 17 September 2026.
o US$105MM of so-called "MIME02" bonds, which will attract an interest rate of 10.25% payable-in-kind. The maturity date of the MIME02 bonds is 10 November 2027.
· The Mime debt being retained by Kistos or retired by Mime, less Mime's cash balances at 31 March 2023 and less the tax refund due in December 2023, equates to approximately US$111MM"
*NOTE SEE ALSO addtional warrants below on production related warrents
The reduction in payment to Mime ( no production , 500,000 Bbl, before the expected Jotan FPSO of August 2024).
" A contingent payment of US$45MM will be made to the MIME02 bondholders in the event 500,000 bbl (gross) have been offloaded and sold from the Jotun FPSO by 31 December 2024. This will decline to $30MM from 1 January 2025 to 28th February 2025, to US$15MM from 1 March 2025 to 31 May 2025, and to zero thereafter.
· If 500,000 bbl (gross) has not been offloaded and sold from the Jotun FPSO by 31 May 2025, the holders of Mime's Nordic Bonds will be allocated up to 2.4 million warrants exercisable into Kistos ordinary shares at a price of 385p each. The warrants can be exercised between 30 June 2025 and 18 April 2028. *Simultaneously, up to 1.9 million of the 5.5 million warrants issued as consideration for the Mime shares will be cancelled"
Any comments?
Baring in mind Mime / Kistos has 10% of expected production estimated once started up 15,000 boe/d
"Mime's share of production from Balder and Ringhorne is expected to be over 2,000 boe/d in 2023. This will increase significantly once the Balder X project is onstream, with production for the enlarged Group expected to be over 15,000 boe/d in 2025 once the Jotun FPSO is onstream"
Sft Note: ref RNS for full details
https://www.lse.co.uk/rns/KIST/agreement-to-acquire-mime-petroleum-as-c13cei2hsof4xtr.html
Note Last up date on Jotun
https://www.offshore-energy.biz/fpso-nearing-completion-but-changes-made-to-north-sea-oil-p
Compare other oil companies and you will see they are having similar rises. Hope something is brewing but it’s just poo movement
Topped up this afternoon, must be something brewing
Me too. Last roll of the dice for me on this. Let’s hope it pays off.
I actually bought back in yesterday after doing some more research into the company. Onwards and upwards from here