Last checked at 11 Jul 2022 07:00
11th July 2022
Kistos plc
("Kistos" or the "Company")
Completion of Greater Laggan Area Acquisition
Kistos plc (AIM: KIST), the low carbon intensity gas producer pursuing energy opportunities in line with the energy transition, is pleased to announce the completion of the acquisition of a 20% interest in the Greater Laggan Area ("GLA") producing gas fields and associated infrastructure alongside various interests in certain other exploration licences, including a 25% interest in the Benriach prospect, from TotalEnergies S.E. ("TotalEnergies") (the "Acquisition"). The effective date of the Acquisition is 1 January 2022.
Completion of the Acquisition marks Kistos' entry into the United Kingdom Continental Shelf ("UKCS"), adding about 6,000 boe/d (net) to Kistos' production in 2022, with 2P reserves increasing by 6.2 MMboe. This substantially increases Kistos' total production base to approximately 12,000 boe/d.
Further details of the Acquisition:
· Kistos has acquired a 20% working interest in the producing Laggan, Tormore, Edradour, and Glenlivet gas fields, located offshore the UK, West of Shetland.
· The Acquisition includes a 20% interest in the undeveloped Glendronach gas field. The Glendronach field was discovered in 2018 and it is anticipated that the development will utilise existing infrastructure and a final investment decision is expected later this year.
· The Acquisition also includes a 25% interest in block 206/4a, which contains the 638 Bcf (operator's P50 resource estimate) Benriach prospect.
· Emissions from GLA production operations are forecast by Kistos to be approximately 13 kg CO2e/boe in 2022, which is significantly below the North Sea average of 22 kg CO2e/boe (as estimated in the NSTA's "UKCS natural gas carbon footprint analysis" of 26 May 2020).
Glendronach will be developed via a single production well. The net cost of the project is estimated to be approximately £20 million and Kistos' share of this expenditure is expected to be subject to the super deduction in the UK's Energy Profits Levy.
The terms of the transaction are as per the RNS of 31st January 2022, with the acquisition being financed out of cash resources.
Andrew Austin, Executive Chairman of Kistos, said:
"We look forward to working with TotalEnergies and our partners within the GLA. The addition of the GLA interest to our portfolio is an important step towards expanding and diversifying our producing asset base in one of the largest gas hubs in the UK. In addition to the immediate significant increase in our daily production, these assets also offer investors significant upside potential from the Glendronach development project and the highly prospective Benriach exploration target. Progression of these two projects is expected to meet the investment criteria for the UK's recently implemented Energy Profits Levy."
Kistos holds the following interests within the GLA:
Licence | Block | Interest | Partners |
P.911 | 206/1a | 20% | TotalEnergies E&P UK* Kistos plc Ineos E&P (UK) RockRose UKCS15
|
P.1159 | 205/5a and 205/5d | 20% | TotalEnergies E&P UK* Kistos plc* Ineos E&P (UK) RockRose UKCS15
|
P.1195 | 214/30a Glenlivet Area and Rest of Block | 20% | TotalEnergies E&P UK* Kistos plc Ineos E&P (UK) RockRose UKCS15
|
P.1453 | 206/4a Rest of Block - excluding Benriach Area | 20% | TotalEnergies E&P UK* Kistos plc Ineos E&P (UK) RockRose UKCS15
|
P.1453 | 206/4a Benriach Area | 25% | TotalEnergies E&P UK* Kistos plc RockRose UKCS15
|
P.1678 | 205/4b | 20% | TotalEnergies E&P UK* Kistos plc Ineos E&P (UK) RockRose UKCS15
|
P.2411 | 214/30d and 206/5c | 25% | TotalEnergies E&P UK* Kistos plc RockRose UKCS15
|
P.2415 | 208/1c, 208/6, 214/4b, 214/5c, 214/9b, 214/10b and 214/14a
| 20% | TotalEnergies E&P UK* CNOOC Petroleum Europe Kistos plc |
P.2594 | 214/28b, 214/29b, 214/30e, 206/3, 206/4b and 206/8b
| 20% | TotalEnergies E&P UK* Ineos E&P (UK) Kistos plc |
P.2604 | 214/12a, 214/13a, 214/14b, 214/17, 214/18a and 214/19a
| 14% | TotalEnergies E&P UK* Kistos plc Shell UK |
* Denotes operator
ENDS
Enquiries:
Kistos plc Andrew Austin
| via Hawthorn Advisors |
Panmure Gordon (NOMAD, Joint Broker) John Prior / James Sinclair-Ford
| Tel: 0207 886 2500 |
Berenberg (Joint Broker) Emily Morris / Jack Botros
| Tel: 0203 207 7800 |
Hawthorn Advisors (Public Relations Advisor) Henry Lerwill / Simon Woods
| Tel: 0203 745 4960 |
Camarco (Public Relations Advisor) Billy Clegg / Georgia Edmonds | Tel: 0203 757 4983 |
Notes to editors
Kistos plc was established to acquire and manage companies in the energy sector engaging in the energy transition trend. The Company has acquired Tulip Oil Netherlands B.V., which has a portfolio of assets, including profitable, highly cash generative natural gas production, plus appraisal and exploration opportunities. In addition, Kistos acquired a 20% interest in the Greater Laggan Area (GLA) from TotalEnergies in July 2022. The GLA includes four producing fields and a development project.
Kistos is a low carbon intensity gas producer. The Q10-A gas field in the Dutch North Sea (60% operated working interest) has recorded a Scope 1 carbon emissions intensity of 13g CO2e/boe since inception. This compares to an industry average of 22kg CO2/boe for gas extracted from the UK continental shelf. The Q10-A normally unmanned installation is located approximately 20 km from the Dutch shore. It is powered sustainably via wind and solar power and is remotely operated, limiting offshore visits, which are conducted by boat.
https://kistosplc.com/