Kistos (LSE: KIST), the low carbon intensity gas producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to announce that Borr Drilling’s Prospector-1 jack-up drilling rig has arrived on location at the Q10-A field (Kistos 60%) and that the Company’s 2021 drilling campaign is underway.
The work programme is scheduled to last approximately four months and to start the process of converting approximately 100 MMboe (gross) of 2C resources into 2P reserves.
As previously announced, planned activities include the appraisal of the Q11-B gas discovery, conducting a flow test of the Vlieland light oil discovery and other activity designed to enhance production from the existing Q10-A well stock. Kistos expects the Q10-A gas field to exit 2021 with gross production of more than 2.0 MM Nm3/d (71 MMcf/d or 12,700 boe/d).
Commenting, Andrew Austin, Kistos’ Interim CEO, said:
“One of the key attractions of the Kistos portfolio is the significant near-term upside potential. We expect that this drilling campaign will start the process of realising that potential and will result in strong organic growth in our reserves and in our production. We look forward to reporting on the progress of our work programme in the coming months.”
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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 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.
A conversion rate of 5.56 MMcf per boe has been used in this announcement.
Dr Richard Benmore, Interim Chairman 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.
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