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Our partner on Buchan looks to be looking to exit the NS.

Who can blame them?

https://www.energyvoice.com/oilandgas/551595/definite-potential-for-neo-acquisition-with-risk-to-buyer/

Production came in at 8.8k for the month.

6k boepd of gas and 2.8k barrels per day of oil.

Breakdown.

UK (GLA) to the 15th of Jan.

Edradour = 0

Glenlivet = 7781boepd of gas and 241b/d oil

Laggan = 6281boepd of gas and 327b/d oil

Tormore = 2535boepd of gas and 178b/d oil.

NORWAY (BALDER)

Total produced in the month 840,476 barrels of oil.

10% net to kistos = 2711b/d

NETHERLANDS (Q10-A)

Total produced in the month 137,734boe of gas

60% net to kistos = 2666boepd

I agree with you regarding Serica/Kistos Mommur.

An enlarged group led by Andrew Austin would immediately give us the much needed geographical diversity we need.

The combination seems blindingly obvious, I hope good sense prevails.

aimo

A fair summary of this morning's webcast there Mr Picky.

From what I could hear of the Q and A I picked up that the new site in Hungary has 10 production lines in operation and has been given audited the green light by our German partners and others.

The non cash write down of powdered met lowers the mid term horizon somewhat but it had to be done. As they said, they still feel the business has excellent growth prospects for the long term.

A £1m buy went through off the book at 14:11pm, so somebody thinks this is cheap.

aimo

A piece from CNBC on the threat of BYD, I noted that they have a factory in Hungary and so will we.

Tesla-rival BYD pushes into emerging markets amid U.S. and European uncertainty

https://www.cnbc.com/2024/03/19/tesla-rival-byd-pushes-into-emerging-markets-amid-western-uncertainty.html?__source=androidappshare

Idkmybffjill,

The Nordic bonds are listed on the euronext exchange.

You'll find the listing there, the rns was dated 29th Feb.

Points of note for me.

1. Statement of reserves at end of 2023 21.9MMboe net to Kistos.

2. In the fourth quarter, 5 cargoes of crude oil were loaded from the Balder FPU. Net to KENAS, these totaled 257 kbbl (742 kbbl for the full year), which realised an average provisional price of USD 81.03 per bbl.

3. In December 2023, the Company received in total USD 87 million in tax refund for fiscal year 2022, including interest of USD 2 MUSD.

4. At the end of the period, KENAS had cash at bank of USD 16.2 million, of which USD 0.2 million was restricted. KENAS had drawn USD 0 million under the terms of the revolving credit facility from its parent company, Kistos plc, at year end 2023.

5. In the fourth quarter of 2023, production from the Balder Area averaged 3.030 b/d net to KENAS. Total production for the full year 2023 was 790 kbbl.

aimo dyor etc etc

Production averaged around 7.5k per day for the month (4300 boepd of gas and 3135 b/d of oil)

Production at GLA is only reported to the 15th of December, this covers the whole period of the Shetland gas plant shutdown. The SGP restarted on the 16th of December, so the production figures for the whole month should be in excess of 7.5k per day.

The breakdown for the month.

UK GLA (To 15th December)

Glenlivet 27.6mmscf/d gas. 228b/d oil

Laggan 7.7mmscf/d gas, 68b/d oil

Tormore 9.3mmscf/d gas, 84b/d oil.

Total = 7905boepd

20% Net to Kistos = 1581boepd of gas and 380b/d of oil.

NORWAY (BALDER)

Total = 27,546b/d of oil

10% Net to Kistos = 2755b/d of oil

NETHERLANDS (Q10-A)

Total = 4532boepd of gas

60% Net to Kistos = 2719boepd of gas

aimo dyor etc etc

Tentative buy at 85.6p.

Hoping this is the 'bottom' before the run up to FY results on the 21st of March.

See slide 12.

1. Subsea production systems, subsea umbilicals, risers and flowlines over 80% complete. All subsea equipment has been delivered.

2. 10 of 14 producing wells complete.

3. 150mmboe of gross 2P

4. Gross peak production rate of 78k boepd

5. Most eye catching for me was the estimated production cost of ~$5 per barrel

https://varenergi.no/wp-content/uploads/2024/02/Var-Energi-Q4-and-FY-2023-results-presentation_.pdf

It's worth bearing in mind the increasing revenues predicted from LNG.

According to the firm’s LNG Outlook published today, demand will rise by 50 per cent by 2040 and global LNG trade will grow to around 625-685m tonnes per year, up from the 404m tonnes traded in 2023.

“China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas,” said Steve Hill, executive vice president for Shell Energy.

“With China’s coal-based steel sector accounting for more emissions than the total emissions of the UK, Germany and Turkey combined, gas has an essential role to play in tackling one of the world’s biggest sources of carbon emissions and local air pollution.”

Sail away estimated to be August 2024 and first oil estimated to be Q4 2024.

From Var's Q4 results.

"The upgrade of the Jotun FPSO1 is ongoing with high construction activity at the Rosenberg yard. The Jotun

FPSO is more than 90% complete. Solid progress has been achieved in increasing pace of construction work on

the FPSO, with overall progress only slightly behind the revised plan and completion of the project is in sight.

Current focus is on executing the remaining construction and commissioning work. Drilling and subsea facilities

activities are progressing according to schedule.

The Balder X targeted start-up is moved to fourth quarter 2024, based on inshore sail away in August 2024."

The production at Balder has risen from 16k boepd in Q1 to 25k boepd in Q4.

All looks good to me.

aimo

From Citi's note.

"Legal & General solvency remains strong but with the new CEO fresh in the seat, we see the likelihood of upside surprises from additional capital return as low at this point,"

Stunning insight, not.. . They may well have summarised their analysis in one sentence "They have a new leader and the share price has gone up a lot recently"

Sorry, that third paragraph should have read

"We know we averaged 9.6k to the end of June and production from July to the end of November averaged 8k. We had just 20 days of production in December from GLA due to the shutdown at the SGP. Our total production for the month needs to be above 6k to meet the guidance of 8.5k to 10.5k."

We should do it easily. 2.5 - 3k from Norway, 2.5k - 3k from the Netherlands and around 2k from GLA.

*20 days of production from GLA*

Production averaged 8.8k per day (5783 boepd of gas and 3035 b/d of oil) and Tormore returned to production.

For the year I am guessing our average production will be around the 8.5 to 8.6k per day mark.

We know we averaged 9.6k to the end of June and production from July to the end of November averaged 8k. We had 20 days of production in December which needs to be above 6k to meet the guidance of 8.5k to 10.5k.

Breakdown for November.

UK (GLA)

Glenlivet 44.5mmscf/d

Laggan 36.6mmscf/d

Tormore 5.4mmscf/d

Total production per day = 15331 boepd of gas and 738 b/d of oil.

20% net to Kistos = 3066 boepd of gas and 148 b/d of oil.

NORWAY (BALDER)

Total production = 28,871 b/d of oil

10% net to Kistos = 2887 b/d of oil

NETHERLANDS (Q10-A)

Total production = 4528 boepd of gas

60% net to Kistos = 2717 boepd of gas

aimo dyor

COPENHAGEN, Jan 25 (Reuters) -Oslo-listed Vaar Energi VAR.OL, majority-owned by Italy's Eni ENI.MI on Thursday said it expected to book non-cash impairments in the fourth quarter related to its Balder oil and gas project of around $530 million before tax.

"The impairment was triggered by reduced commodity prices and increased cost," Vaar Energi said in a statement.

Vaar has repeatedly warned of cost overruns at the Balder field development in the North Sea.

The company in 2022 flagged the oil and gas project would cost $1.2 billion more than previously expected, and in September Vaar said the project would cost another $340 million.

After tax the fourth-quarter impairment amounted to around $117 million, Vaar said.

"We view this as undramatic and a technicality," brokers DNB Markets said in a note to clients.

Vaar owns 90% of Balder while Kistos Energy holds the remaining 10%.

DTP,

I agree entirely with your sentiments.

We are where we are, better to utilise the lending facility to drain as much from our current assets.

And then there's those tax losses that we seem to hear very little about these days.

In December 2022 when the board recommended the acquisition they said that "Tailwind has significant UK ring fence CT losses of $1.4 billion and Supplementary Charge losses of $1.2 billion"

New year, New CFO, let's hope he can begin to use those losses to our advantage.

aimo

Whilst instinctively being against the TW deal I have to give a little credit to the board.

Balancing our oil and gas production was much needed and has been proved to be a good move. Gas prices are down around 55% over the past year whereas Oil is down only around 8%

A second production hub? Yes, a good move to make our production more robust.

However, the big elephant in the room was that the TW deal did not diversify geographically.

A move into Norway was heavily hinted at by Steve Edwards, a move I was eagerly anticipating. But now Mr Edwards is to leave the company before the end of March.

Did he run out of patience?

I assume so,

Redemption date of the bonds was 22nd December and the company states in the rns that at the end of the 2023 calendar year we had cash and near-cash of approximately €275 million (including estimated tax receivables).

Very good news regarding the victory development too. From GLA we have had approximately 100MMscf/d going through the Shetland gas plant. From memory the plant has a capacity of 500MMscf/d, so our operating cost per MMscf/d has been relatively high.

Once Victory is online (and hopefully Edradour west and Glendronach) we should be processing 250-300MMscf/d with plenty of spare capacity for further additions.

aimo