Operational Update

Kistos plc

("Kistos" or the "Company")

Operational update

Kistos (LSE: KIST), the low carbon intensity energy producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to announce that that Borr Drilling's Prospector-1 jack-up drilling rig has left the Q10-A field (Kistos 60%) and arrived on location at the Q11-B discovery (Kistos 60%). The spudding of the appraisal well is expected later this week.

The Q11-B appraisal well represents the concluding planned activity in our 2021 drilling campaign and is anticipated to take a minimum of 6 weeks to drill and test. It is intended that the well will be suspended for future use in a Q11-B development. Kistos has previously estimated 2C resources for this accumulation of between 67 - 155 Bcf net. This estimate was independently audited by Sproule and will be refined following review of all the data from the forthcoming well.

At the Q10-A field, we have completed a successful drilling campaign, highlighted by the appraisal of the Vlieland sandstone formation in the Q07 and Q10 blocks. As previously announced, it flowed oil to surface at a maximum stable rate of 3,200 barrels of oil per day (bopd). Pressure-volume-temperature (PVT) analysis of downhole samples has confirmed a light oil of 33° API, with a low sulphur content. No formation water was produced or sampled on test. Work is ongoing to integrate the data into our subsurface models. Work has also begun on the development concept.

Following the testing of the Vlieland formation, a sidetrack was drilled from the Q10-A04-A wellbore at high angle through the Zechstein carbonates and clastics and completed in the primary Slochteren formation at a TVDss of 2,319 metres. Following data acquisition, the well is now producing gas from the Slochteren reservoir at a gross rate of ~800,000 Nm3/d (~5,080 boe/d) with the other horizons currently shut-in for reservoir management purposes. Following the completion of drilling and intervention activities on the Q10-A field, gross gas production has reached approximately 2,000,000 Nm3/d (12,700 boe/d).

Commenting, Andrew Austin, Kistos' Chairman, said:

"One of the key attractions of the Kistos portfolio is the significant near-term upside potential and I was delighted when I was able to announce the extremely positive results from the appraisal well in the Vlieland sandstone. This success continued with the positive result from the sidetrack of the Q10-A04-A well, which has added materially to our production at a time of high gas prices. I am now looking forward to reporting the result of the Q11-B appraisal well in the coming weeks."

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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. The Company has 19.5 mmboe of 2P reserves and an additional 102.1 mmboe of contingent resources.

Kistos is a low carbon 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/ 

Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelors, Masters and PhD in Geosciences and who has been involved in the energy industry for more than 37 years, has read and approved the disclosure in this announcement.

The Company's internal estimates of resources contained in this announcement were prepared in accordance with the Petroleum Resource Management System guidelines endorsed by the Society of Petroleum Engineers, World Petroleum Congress, American Association of Petroleum Geologists and Society of Petroleum Evaluation Engineers.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (as it forms part of retained EU law as defined in the European Union (Withdrawal) Act 2018).