Business
Operational Update
Operational Update.
About this update from Kistos Holdings Plc
[{"type":"text","content":"\n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310).\n \n \n \n \n \n Kistos Holdings plc\n \n \n (\"Kistos\" or the \"Company\")\n \n \n Operational update\n \n \n Kistos (LSE: KIST), the low carbon intensity oil and gas producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to provide an update on its drilling activities in the Netherlands and the United Kingdom.\n \n \n \n United Kingdom\n \n \n \n The Benriach exploration well, located on block 206/05c (Kistos 25%) West of Shetland and operated by TotalEnergies E&P UK, has been spudded by the Transocean Barents. The operator estimates it is targeting P50 prospective resources of 638 Bcf (160 Bcf or 28mmboe net to Kistos). The well is expected to complete in Q3 2023. The dry hole post-tax cost net to Kistos is forecast to be ~£2.5 million as a result of Kistos' tax paying position and the enhanced investment allowances from the Energy Profits Levy.\n \n \n Netherlands\n \n \n After arriving on location at the Q10-A gas field (Kistos 60%) in November 2022, the Valaris 123 rig recently departed after safely completing its work programme. The results of the campaign were mixed. This was due to mechanical issues arising from utilising the existing well stock rather than reservoir performance issues. The Kistos technical team, with the assistance of external consultants, is undertaking a detailed evaluation of the results and future production enhancement options.\n \n \n Future work programmes are being considered and could include the drilling of further Zechstein clastics wells in 2024 in combination with development drilling at the Orion oil field. Engineering design work has now been completed to enable the installation of two more risers on the platform, which would allow it to host additional wells. The Orion field continues to progress through the Concept Select Phase, which Kistos is undertaking with the assistance of Rockflow Resources.\n \n \n Andrew Austin, Kistos' Executive Chairman, said:\n \n \n \"We are excited that the Benriach well is underway. It is an important milestone for the Company with the potential to add significant reserves. I look fo...