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Diamondguru,

Cash, debt and net debt are always changing so it depends when you ask.

The company uses the adjusted net debt calculation, which I prefer as it gives a truer state of a businesses financial health at any given time. It's definition is:

"Adjusted net debt is a measure that management believes is useful as it provides an indicator of the Group’s overall liquidity. It is defined as restricted funds and cash and cash equivalents, prepayment for new acquisition and tax receivables less the face value of outstanding bond debt, excluding the Hybrid Bond, which, in management’s view, represents contingent consideration rather than bond debt due to the payment triggers associated with it."

At the end of December:

Net debt was $76m

Debt was $280m

Cash was $204m

We now know cash at the end of May was $209m

Hope this helps.

aimo

Note 2.6 detailed the latest valuation for the Netherlands CGU (cash generating unit) at $7m giving rise to an impairment of $14m in the 2025 results.

It's good to know the business has now been virtually written off, P15-D is probably always going to be a bottleneck that we have no control over. And, if things change the only way is up for the Netherlands arm of Kistos.

The remaining headache is the solidarity tax issue.

We filed our return in May 2024 and as far as I know, we have yet to receive any correspondence from the Dutch tax authority regarding the solidarity tax. An increased provision of £$55m (2024 $49m) has been made to cover any potential tax + interest+ fines decision.

I just wish the EU/Dutch authorities would make definitive decisions for us and the other oil and gas companies contesting similar unreasonable tax demands.

Any news from fellow shareholders regarding any court case updates or news related to the EU solidarity tax would be much appreciated by me.

aimo.

Hedgeman, one of your posts contained the following sentence "Balder Next FID adds a further ~11 mmboe gross to the reserve base at $30/boe breakeven"

That is incorrect. Balder Next should add ~86 mmboe gross, which is 11 mmboe more than the previous estimate of 75 mmboe gross.

So, net to us of 8-9 mmboe.

aimo

A couple of snippets that may be of interest.

1. US stockpiles at Cushing, Oklahoma, are below operational requirements of 20 million barrels at roughly 19 million barrels. On a purely Sell high, Buy low strategy, it would appear that they have benefitted handsomely from the SoH closure.

2. Ukraine's refinery strikes are apparently working. Russia are exporting more crude than at any time this year, around 3.8m barrels a day. Urals crude is trading at around $59 a barrel, the lowest since March.

*we are approaching top up territory*

Off the back of the improved guidance, for long term holders, we are

▪ Full year production guidance narrowed upwards to 480-500 kboepd (475-500 kboepd previously), reflecting strong year-to-date performance (including 520 kboepd in April) and ahead of planned UK and Norway maintenance programmes

▪ Full year operating cost forecast unchanged at c.$14.5/boe

▪ Expected total capital expenditure of $2.2-$2.4 billion reiterated

▪ Assuming $80/bbl Dated Brent and $13/mscf European gas prices for 2026, full year free cash flow

outlook is increased to $1.4 billion (previously $0.6 billion at $65/bbl and $11/mscf)

– In line with our distributions policy, and assuming the lower end of the free cash flow payout range

of 45-75%, this would result in shareholder distributions of c.$0.6 billion with respect to 2026 and

c.$0.8 billion allocated towards debt reduction

– Consistent with our stated 2026 free cash flow sensitivity: A $5/bbl change in Dated Brent or

$1/mscf change in European gas prices for the full year impacts our 2026 free cash flow by c.$170

million or c.$150 million, respectively5

OQEP / OXY & Mitsui have signed an amendment to the EPSA to boost production. My guess is that in order to approve an extension beyond 2030 the ministry have asked for the partners to basically 'put up or shut up'. Here's the text from the Muscat stock exchange announcement.

It would seem that the final approval for us taking over from Mitsui was not in place on Monday, it will come I'm sure, just a case of getting the signature.

"Subject: OQ Exploration & Production Signs Amendment to Block 9 Exploration and Production Sharing Agreement

On 22nd June 2026, OQ Exploration & Production S.A.O.G. (“OQEP”) signed an amendment to the Exploration and Production Sharing Agreement (“EPSA”) attributable to the participating interests of partners in Block 9 in Ad Dhahirah Governorate with the Ministry of Energy and Minerals (“MEM”), Occidental Oman, and Mitsui E&P Middle East B.V.

This milestone unlocks significant value, strengthens our reserves and financial excellences, as well as it supports Oman’s Vision 2040. This amendment is effective from 1 July 2026, following approval from the Ministry of Energy and Minerals.Block 9 is a producing asset located in the north-west of the Sultanate of Oman and is operated by

Occidental Petroleum, which holds a 50% participating interest. OQEP holds a 45% participating interest, while Mitsui E&P Middle East B.V. holds the remaining 5%. The EPSA is currently valid until 2030. Under the terms of the amended EPSA, the Block 9 consortium is expected to increase activity levels within the block, including exploration and development drilling, with the objective of

enhancing production and supporting future reserves growth. This amendment supports OQEP’s strategy to

maximize value from its producing assets, while fueling its growth strategy, enhancing our organic growth and reinforcing its position within Oman’s upstream oil and gas sector. We thank the Government and our partners for their continued support, which has been key to advancing

the investment in Block 9.

Best Regards,"

https://tools.eurolandir.com/tools/Pressreleases/GetPressRelease/?ID=8081051&lang=en-GB&companycode=om-oqep&v=

aimo

Yes, that's my understanding.

When the Norwegian bonds were refinanced the company stated results would be issued by June 30th.

"The Issuer notes that it has successfully priced a USD 300,000,000 issue of senior secured bonds at par, and that such bonds have already settled. Delivery of the Financial Statements is expected to occur imminently and in any event before June 30th."

aimo

It was expected but excellent news all the same. An extra 11m barrels, $30 per barrel breakeven and a 35% rate of return are truly exceptional numbers in the industry.

https://varenergi.no/en/newsroom/stock-exchange-announcements/?release=29C03573710EF7E3

1755,

It is an option for the future, nothing more at this point.

If the concept is proven and becomes profitable it adds more value to our €20m investment.

Gas storage is the only game in town for the next 20 years or more, but beyond that, if governments choose to phase out gas who knows. The board are simply preparing for all scenarios.

aimo

Kistos exploring the possibility of using the salt caverns to store compressed air in order to generate electricity.

1. During low demand periods use excess electricity to compress the air in the cavern.

2. During high demand periods, release the compressed air and use it to force water through a turbine to generate electricity.

3. Used on conjunction with a traditional Li-ion storage system gives you plenty of optionally.

This is what I love about Kistos, they are always looking for an angle, an advantage, a revenue stream.

https://e-greenify.com/news/romanian-salt-caverns-as-energy-storage-a-new-caes-project-worth-e55-million/

aimo

Yeah me too, picking up whenever the MM allows me to buy at under 240p.

3 weeks maximum until results, when I'm hoping/expecting the next re-rate.

aimo

It would appear that loading are continuing normally following the Reuters report of a drone strike at the terminal.

Reports are unclear but here's a summary of the news reports so far.

https://www.google.com/amp/s/www.newarab.com/news/what-we-know-about-reported-explosion-omans-oil-terminal%3famp

I thought Rich and Francesca came across very well, seemed on top of their game and speaking confidently about our prospects. However, Carla Riddell didn't fill we with confidence, reading entirely from script and didn't go off script at all.

Maybe she just doesn't enjoy speaking publicly?

And, playing devil's advocate, with so many people on the leadership team now... what does Chris actually do?

After all we are not bp or Shell.

aimo

It certainly was overdone! Up 25% in a month.... IBM? This tech rally is getting silly, but I ain't complaining!

As Monday May 4th and Monday May 25th were bank holidays in England and in Norway, May 1st, 14th and 25th were bank holidays that fell on weekdays I am guessing they may not count as business days for the terms of the bonds?

So, I'm guessing, Kistos may have until next Tuesday or Wedensday to release results.

aimo

Nike starting to gain a little traction now. I am hoping/expecting that this will continue as investors rotate out of the tech/AI stocks, some of those are surely over hyped and over priced at current valuations. I expect some of the smart money to move into dividend paying undervalued stocks like Nike. I also have Novo Nordisk and Kraft Heinz that are in a similar position to Nike.

aimo

There is still a misunderstanding of how damaging the closure of the SoH has, and will continue to be. It will take at least four months to ramp oil flows to 80% of normal levels even if the U.S.-Iran conflict ends immediately, said Sultan Ahmed al-Jaber, head of Abu Dhabi National Oil Co., last week. It will take until the first or second quarter of 2027 for flows to fully normalize, he said.

Above 'normal' oil prices and revenues to Kistos will remain elevated for many months to come.

We just have to sit tight and wait for the market to realise this.

aimo

As part of the divorce settlement between Mr & Mrs Austin 50% of Andrews shares will be transferred to his wife. It seems like a fair and amicable arrangement whereby no shares can be sold until Andrew sells some (unless legally ordered to do so) and her votes will be cast in accordance with Andrews instructions. It's always sad when a marriage doesn't work out but sometimes it is for the best, condolences and the best of luck for the future to both of them.

The terms:

1. she will not pledge or borrow against her shareholding in Kistos;

2. she will not sell or transfer any of the ordinary shares in Kistos received under these arrangements unless required by law, subject to the following exception:

a. In the event that Mr Andrew Austin sells or transfers any ordinary shares in Kistos, Mrs Kulie Austin is permitted (but is not obliged) to sell an equal number of shares within 60 days of any sale by Mr Andrew Austin;

3. she will accept, vote to accept, or provide an irrevocable undertaking to accept, any takeover offer for Kistos (in the event that one is made), where such offer is accepted by Mr Andrew Austin; and

4. she will vote, or procure the voting, of all of the ordinary shares in Kistos received under these arrangements in accordance with the instructions of Mr Andrew Austin.

If there's a dip this morning I'll be in.

aimo

I hope everyone is alright, I'm just biding time to results which shouldn't be too far off, hopefully including the completion of the Oman deal.

The update from Var in April was everything we could hope for, reliable production with projects either in progress or sanctioned to keep production from the FPSO at 70 to 80k barrels per day through to 2030.

"Performance of the Balder Area was strong with average production of 118 kboepd in the quarter, an increase of 4% compared to

the fourth quarter 2025, driven by strong production efficiency on Balder and start-up of the third Balder Phase V well in first

quarter. In addition, two new wells have been started at Breidablikk and one at Grane in the quarter.

The Balder field production efficiency was above 95% in the quarter including the Jotun FPSO operations. This is better than

target, and up from 92% in the previous quarter.

Turnarounds are planned at Grane in the second quarter with a duration of around three weeks and at Balder FPU and

Ringhorne planform with a duration of around ten days. The turnaround at the Jotun FPSO is scheduled in the third quarter with

a duration of around ten days."

".......Combined this gives production from the Balder field area in the range 70 to 80 kboepd gross towards 2030. The decommissioning of Balder FPU is expected to reduce operating costs by around USD 130 million gross per annum and CO2 emissions by around 70,000 tonnes gross per year. The above projects are steps to ensure high value barrels from the Balder area towards 2045 and beyond."

aimo