RE: Kistos ?25 Nov 2020 21:46
The Company has initially identified (by way of appraising the proposed strategy and the opportunity) several potential target transactions which the Directors believe could be completed in the near term. Of these potential transactions, the Directors believe that several may be capable of rapid execution with minimal initial cash outlays, thereby allowing the Company’s cash resources to be employed in the rapid development of its operational assets. The Directors have made these assessments on the basis of information in the public domain only and accordingly there can be no guarantee or expectation that any owners of any particular asset(s) would be receptive to an approach from the Company. The strategy and the opportunity accordingly remain speculative and untested at the current time.
The Directors believe that there is increasing appetite in the power industry for domestic gas production opportunities and power response projects. This is against a background where traditional junior exploration and production companies are finding little private capital support for smaller scale stand-alone projects. The Directors have noted with some interest, recent merger activity in the power generation sector and the emergence of opportunistic corporate consolidation as a means to develop incremental generation capacity and efficiencies.
Following completion of any Acquisition, the objective of the Company will be to operate the acquired business and implement an operating strategy with a view to generating value for its Shareholders. This may be achieved through either, or both of: operational improvements; and/or complementary acquisitions. The Directors will maintain a focus on cash generation and ultimately a progressive dividend policy.
The Company’s efforts in identifying a prospective target company or business in the upstream and downstream hydrocarbon production and power sector will not be limited to a particular geographic region and, whilst the focus will initially be on the UK and Continental Europe assets and the Continental Shelf, it is possible that an Acquisition with compelling potential may be found in Continental Europe, Ireland or the Scandinavian region.