(Sharecast News) - Hydrocarbon producer Kistos announced the completion of exploration drilling on the Benriach well, located West of Shetland, on Monday.
The AIM-traded firm said the well, operated by TotalEnergies, encountered gas bearing sands in the targeted Royal Sovereign formation.
However, the discovered resource was expected to be sub-commercial in scale.
The company said the drilling operations, carried out by the Transocean Barents rig, were executed ahead of schedule, demonstrating excellent operational performance.
It said the final cost of the project was expected to be within previously provided guidance.
Throughout the drilling process, there were no reported lost time incidents or first aid cases involving staff or contractors.
The Transocean Barents rig, mobilised from Olen, Norway, started drilling activities on 21 March.
It reached a total measured depth of around 4,400 metres, successfully acquiring an extensive range of data during the process.
The data acquisition programme included rotary sidewall cores, comprehensive wireline coverage, live pressures, and fluid samples.
TotalEnergies would now begin analysis of the acquired data.
Kistos Energy, holding a non-operated working interest of 25%, operates in licence P.2411.
The partnership comprises TotalEnergies as the operator with a 50% interest, as well as Rockrose Energy with a 25% interest.
"The operational performance has been excellent, and I would like to thank TotalEnergies and the team on the Transocean Barents rig, who drilled the well safely and efficiently," said executive chairman Andrew Austin.
"Kistos remains committed to bringing additional gas volumes through the Shetland Gas Plant to add shareholder value and contribute towards domestic energy security, and we look forward to providing further updates to the markets in due course."
At 1002 BST, shares in Kistos Holdings were down 5.74% at 256.39p.
Reporting by Josh White for Sharecast.com.
Kistos Holdings (KIST)