AA comments14 Apr 2021 11:02
Andrew Austin, Chairman of Kistos, commented:
“We are very excited to be beginning the next phase of Kistos’ journey with the acquisition of these profitable and cash generative assets, which have probably the lowest carbon footprint of any production assets in the North Sea. To be producing gas, a vital transition fuel, from normally unmanned platforms powered by solar and wind is exactly what we set out to do. In addition, we see potential for significantly increased production from discovered hydrocarbons within the licences being acquired by Kistos.
“The team at Tulip have done a fantastic job to date in getting this low carbon production operation up and running and we are looking forward to working with them and our partners at EBN in replicating this success and being a model for future low impact developments.”
So, Andrew Austin has delivered a deal as promised and one of size and also within the indicated timescale. Indeed while on promises he has delivered a deal that is in energy transition and in gas and taking a look at the ‘greenness’ of the deal I can’t see anything on the radar screen with such carbon credentials – bar none.
The size may be slightly larger than I expected but then never say that with AA of course and with the shares now suspended as it is an RTO and needs a bond issue which is likely already underwritten and an equity raise to sort out in the next few weeks. Kistos has started with a clean sheet and already added the greenest deal around which makes a lot of sense on an economic basis and points us in the future direction of travel.
In terms of this as a starter deal it looks very exciting indeed, it includes a great deal of already discovered hydrocarbons so the pressure is off to a certain extent to do another deal in a hurry although that has never stopped AA before…
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