Kistos Holdings Share News (KIST)

(Sharecast News) - Energy producer Kistos said on Wednesday that it had received "extremely positive" results from its appraisal well in the Vlieland sandstone off the coast of the Netherlands.
Kistos said on Wednesday that after encountering the target formation at a depth of 1,562 metres, an 825 metre horizontal section was drilled, with the Q10-A-04 A well flow tested for five days and yielding a maximum stable rate of 3,200 barrels of oil per day, which was higher than anticipated.

The AIM-listed firm stated the oil will be sold to a local refinery and was good quality with an API of 33°.

Kistos added that the well was 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 it prepares a field development plan for the project.

Elsewhere, Kistos said it had signed an agreement with Infinergy and Windcollectief Noord-Holland to acquire Windpark Ferrum, which 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.

Interim chief executive Andrew Austin said: "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."

As of 1120 BST, Kistos shares were up 9.13% at 263.0p.