Member Info for Areyouminted

Hi NQM, thanks for all the great posts. I think the 20 business days only starts from May 13th when Kistos Norway acknowledged the fact that the 2025 financials had not been posted by 1st May for the reasons we all know, Oman concluding etc. So I think it's more like June 9th or 10th......

Full disclosure. I became an investor in Rockrose during covid when the world was going to end. I held through covid etc until the sale to Viaro. I put 10k in Kistos on day 1, 20th Nov 2020 and have bought more along the way, such that my breakeven is quite ‘unhealthy’. Haha.

History does not repeat but perhaps it rhymes.

At Kistos we did the capital reduction process, which has now given the board greater flexibility on utilising our own cash to buy back shares for retention and / or cancellation or pay dividends. At Rockrose a similar action led to a one off distribution of £1.50 to each of the existing shareholders, but it was a slightly different process with the creation and cancellation of a ‘B’ share with the £1.50 payment in lieu of its cancellation.

At Kistos there has also been a block admission of new shares. The board always gives its own employees the opportunity to partake in the company’s success. Rockrose did the same in the RNS’s mentioned above.

We have 2/3s of our production in a stable tax regime, where Vår pay a substantial quarterly dividend to their own shareholders.

The Victory tie up reduces opex on GLA as well as Serica presumably having a plan for further expansion, an FID on Glendronagh, infill wells etc.

We are also tied closer to Serica in that they are now the 66% owners of the 7 exploration blocks acquired in the 33rd licensing round in Aug 2024.

I think we are in very exciting times, it’s just that it doesn’t feel exciting.

GLTA -

This the first of 2 posts. Since the share price has once again turned down…..

Let’s have some excitement for a Thursday morning. Kistos has production of 11,000ish from Norway, [Balder plus Ringhorne] 2,500 from GLA and 1300-1400 from Netherlands and our on shore gas storage assets producing small but regular and predictable profits.

We are a giant ATM splurging cash!!! Our production income is presumably c. $28-30 million USD per month at current prices.

I note the previous comments in the chat around the Mime debt repayment schedule. Don’t forget that in his interview with Malcy, Mr Austin described the tax rebate as a free hit in cricketing terms, meaning that you can set December’s due tax rebate against the profits on that income.

And right now Vår Energi ASA are currently spending further monies on Balder phases 5 and 6. This adds new wells connected by additional tie backs to the Jotun FPSO. These additional wells will mean that production will continue at peak or close to peak capacity for another 4-5 years.

At Rockrose the board made a new acquisition in October 2017 and the shares were suspended, pending a due diligence process. You can read all about it here on LSE, if you follow the RNS’s from Oct 2017 through to Feb 2018 and following. https://www.lse.co.uk/rns/RRE/

At Rockrose in 2018 there were 13 million shares in issue. Rockrose returned £22 million to shareholders, £1.50 per share. This caused the share price to double when it came back from suspension, on Feb 19th 2018. But that is not the whole story. There was a combination of the share coming back from a 4-5 month suspension coupled with the special one off dividend. The shares were suspended at approx. £1.50 in Oct 2017. The day they came back to the market it was quite a day.

Rockrose opened at £3 !! - why wouldn’t it ? - since everyone had just received £1.50 [all their money back!] - and just acquired additional assets, why not buy more?. During the day it peaked at £3.90 before, then, presumably some people took some profits and it finished the day at £3.45.

My point is only this. This is a management team that has huge skin in the game and I have found they always seek to do the best for the company and make the right decisions for the company’s growth and long term value for all shareholders. As far as I can make out, although I stand to be corrected Mr Austin, himself never sold a single share in Rockrose from January 2016 to August 2020. Sometimes with a new acquisition he bought some more along the way but he only ever bought more and kept all his shares right through to the final sale to Viaro. In Kistos to date, as far as I am aware he has done exactly the same thing. He participated in the company set up at £1, the cash raise at £1.55 for the Tulip acquisition and made a further purchase after the Mime acquisition.

Hi All, Good morning. So I think the news is generally very good. Balder Future delivered ahead of schedule. The intriguing part of the update is "Balder Phase V is ongoing. 1. Six new multi-branch subsea production wells are underway, with expected production rates and reserves equivalent to the wells installed within the Balder Future project. 2. Two of the Phase V wells are expected to come on stream in Q4 of this year, with the remaining wells being completed during 2026. So that suggests that aside from natural decline on the 14 subsea Balder Future wells already connected, the 6 new wells are expected to produce a further 80,000 boepd, with our share 10% being a further 8,000 boepd. Am I reading that right?. GLTA holders here.

Hi redwineday, thanks for your patience….I draw your attention to previous capital reduction actions by the company, referred to in RNS’s dated 10th and 12th October 2022 when similar capital reduction exercises took place, moving reserves of 50 million euros to the share premium account.

My sincerest apologies that I got the wrong end of the stick about the £122 million reserve and I agree wholeheartedly with your statement about …’.why wouldn’t the share price increase by £1.40 odd pence if the capital reduction resulted in a special dividend of that size?’.

I saw something similar with Fortune Oil in 2012 /13. They announced the sale of a subsidiary and a special dividend once the transaction would be completed. The resulting special dividend was worth about 30% of the then share price and the price never moved. And i was puzzled as to why? - Did investors not believe the transaction would complete?. Anyway I stayed invested and the sale went through, the special dividend was paid and there was no mass exit sell-off of the shares following it either. It was strange to observe and be a part of…..

The Kistos shares have had a good run up especially since the Nov 2024 lows of 93p / 94p.

So i suppose the catalysts are.

Imminent production from Balder ramping up to 80,000 boepd with our 10% stake being 8,000

Sanctioned Balder Phases 5 and 6 to add a further 30,000 boepd, our share being 3,000…

A clean balance sheet. Only the Norwegian debt which can be refinanced at a cheaper cost due to our improving cashflow and profitability. Unhedged production.

With the board’s shareholdings and supportive institutions I think there are fewer better prospects in the UK market.

We also know that the board’s speciality is seeking accretive acquisitions, good stewardship of those assets and seeking development upside as with Norway where we have a stake in the Prince/King discoveries also.

Don’t forget when the whole world was in the early stages of the pandemic, lockdown and the share price rout, Rockrose with a depressed market cap was putting together a 1 billion usd bid for Siccar Point Energy…….that is why i am a long term investor here……

GLTA.

Hi Diamondguru, I think the board are just giving themselves the flexibility to make distributions as dividends or do share buybacks. In the circular it is stated as a merger reserve. I have been scouring the 2022 end of year balance sheet and financials looking for it. At end of 2024 we had 114 million in cash and in the 5 months since with opex at 29usd overall i expect we have 150-160 million currently...I think we now only have the Nordic debt, against the Ringhorne and Balder assets, which is perfectly manageable, in view of the existing cash flow and Jotun expected revenues. All of these factors leave the board in a very strong position to pay a one-off dividend, do buy backs or put in place a regular dividend. AIMHO

Apologies for 2 messages - At Rockrose the board did a return of capital to shareholders similar to the one i have described above. It happened on 15th Feb 2018, a long time before the share buyback was undertaken. Every holder of an ordinary share of Rockrose received a B share of no value which was immediately cancelled and £1.50 was paid to each shareholder for each of the B shares allocated to them. These payments were completed about 7-10 days later after a similar court mandated order, as the one envisaged by the Kistos circular dated 5th June. Why shouldn’t our market cap soon reflect the totality in cost of the assets purchased, our acquisition timing, the quality of assets attained and the revenue streams derived?. £6 a share is only £480 million market cap, based on the 82.8 million shares in issue. Our envisaged revenue based on 14,000 boepd, including Balder at $60 oil, generates us revenues of $300+ million per year, albeit in a full year.

GLTA.

Hi All, DiamondGuru, MagicMoneyTree, I note the documents referred to previously the presentation on the Dutch assets from 2021. Moving Gas across P15D was always an issue. It is TAQA owned and they are exiting the north sea. I think downtime last year was 15%, whereas Q10A downtime was zero. Those previous presentations envisaged finding the Tulip company ‘Sproule’ indicated oil and gas resources at Q11B which was meant to be a mirror resource of Q10A. After drilling this was found not to be the case, so all the plans for a separate export route to shore, avoiding P15D, a second platform for Q11B etc have all been shelved. Less resource means they are unwarranted. So Q11B and the Vlieland Oil now referred to as Orion, can all go ahead with FID and are commercially viable, but the continued uncertainties on P15D, EU/Dutch taxation and an ongoing war, suggest patience. New gas and the oil would use slots on Q10A, rather than a second platform, making the whole undertaking cheaper, but that still leaves questions around the route to shore, cos it would still be across P15D.

Once the poor drill results were recognised in late 2021, with less oil / gas than envisaged, Kistos bought 20% of GLA from Total. A brilliant move. We paid $125 million USD but 65million USD had accrued to our credit [Jan- June] before completion in June of 2022. The increased gas price, exacerbated by the war, meant that the balance to pay was only 60 million by the time it completed. We also did a profit share with Total on gas over a certain price. This avoided the winner / loser scenario after the fact…..so Total got additional revenues beyond the $125 million originally agreed due to the gas price increase. So we shared the extra profit 60:40 i think. We have no GLA debt. The TONO [Tulip] debt was paid off 2-3 years ahead of schedule, saving shareholders about £25 million in interest payments.

The AGM has been announced. If you read the 20 page document under circulars, I think the board intends to return £122million to shareholders through the Capital Reduction scheme. Everyone with a share on a certain date will receive a bonus share equivalent to the ordinary share already held. The bonus share will be immediately cancelled by the court order indicated as envisaged to take place on Aug 6th, [if approved at the AGM on June 30th] so everyone would receive approx £1.48 - £1.55, based on the £122million return of capital divided by the number of shares in issue, 82.8million.

I saw that someone suggested that at Rockrose the 20% premium for a share back. Yes, the board did a tender offer at £5.60 when the shares were trading at maybe £4.70 odds. The idea was to get rid of an overhang of shares held by people seeking to exit but unhappy with the then, current price at that time. It worked well. Some people exited at a 20% premium. The remaining shareholders including the board stayed and then launched the bid for Marathon. And the rest is histor