Kistos reports solid first half operations

Gas producer Kistos updated the market on its first-half operations on Tuesday, following the acquisition of Tulip Oil Netherlands in May for €223m, including the assumption of €87m of debt.

The AIM-traded firm said the deal included a 60% interest in and operatorship of the producing Q10-A gas field, with 2P reserves of 32.9 million barrels of oil equivalent.

In the first half, gross production from Q10-A averaged 1.35 million normal cubic metres per day, equivalent to 48 million cubic feet or 8,600 barrels of oil equivalent each day.

After raising €150m in the Nordic bond market and approximately £100m from equity investors since it was incorporated in October, Kistos said it remained “well-funded”, with cash balances at period end on 30 June totalling €59.1m.

“Kistos is well placed to generate substantial value for shareholders,” said interim chief executive officer Andrew Austin.

“We have a busy schedule in the second half of 2021, which we hope and expect will result in strong organic growth in our production from 2023 onwards.

“In the meantime, we will seek to deploy our balance sheet strength to make further acquisitions that meet our criteria.”

At 1531 BST, shares in Kistos were up 1.23% at 205p.