Kistos secures new UK offshore blocks; protected from Balder X delays

(Alliance News) - Kistos Holdings PLC on Wednesday announced it has been offered new offshore blocks and said it does not expect delays at the Balder X to have a significant financial impact.

The London-based energy company announced that, together with its joint venture partner TotalEnergies SE, it has been offered seven new block or part blocks in the Greater Laggan Area, West of Shetlands offshore the UK.

Applications for these blocks were submitted in January 2023.

Once the licencing round is complete, Kistos will hold a 33% working interest in all of the acreage with TotalEnergies assuming operator status.

"The award of these blocks, which include the previously identified Ballechin exploration prospect, supports the JV partners' efforts to identify opportunities to extend the life of existing infrastructure and maximise economic output. The work programme includes studies on a seismic dataset that is already owned by the JV partners," Kistos said.

On Wednesday, Kistos noted that Var Energy AS said the planned start of production at the Balder X oilfield offshore Norway, in which Kistos holds a 10% interest, has moved to the second quarter of 2025.

Kistos acquired its interest in Balder X through the acquisition of Mime Petroleum AS in April 2023.

Kistos said: "In the deal structuring with the bond holders (who effectively controlled Mime at the time) we protected Kistos from such a delay and cost increase by the provision of the USD45 million hybrid bond. This USD45 million is structured such that if 500,000 bbls (gross) isn't lifted from the Jotun [floating production storage and offloading vessel] before the 31st May 2025 then the full USD45 million is not payable.

"Therefore, we as a board are confident that there will be no adverse impact from the delay. It is likely that the effect of the delay on capex will be significantly less than the positive effects of the hybrid bond not being paid in full."

Kistos shares closed 3.0% higher at 139.00 pence each in London on Wednesday.

By Elijah Dale, Alliance News reporter

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