North Sea operator Kistos (LON:KIST) has hailed the “strong investment environment in Norway” as it provided a trading and operational update ahead of its full year results.
The London-headquartered firm achieved average production of 8,050 barrels of oil equivalent per day (boepd) in 2024, a slight drop on its 2023 result of roughly 8,800 boepd.
Kistos estimated its year-end net 2p reserves at 24.6 million boe, which includes interests in the Greater Laggan Area in the UK North Sea and the Balder Area in Norway.
The company also holds several exploration and production licences offshore the Netherlands.
Kistos recorded total cash of $144 million (£115m) at the end of 2024, following the receipt of $84m (£67m) in tax rebates relating to its Norwegian assets.
In December 2025, the company expects to receive a further $65m (£52m) in tax rebates relating to investments made in 2024.
Kistos said its proforma net debt stands at approximately $45m (£36m), which includes tax rebates in the next year.
Kistos executive chairman Andrew Austin said given its “robust cash position”, the firm’s board “continues to assess acquisition opportunities that offer value accretive expansion”.
Meanwhile, the company’s hybrid bond debt, which is contingent on operational milestones being met, has reduced from $45m (£36m) to $30m (£24m).
The operational milestones include the offload of 500,000 barrels of Balder crude oil from the Jotun FPSO in Norway between 31 December 2024 and 31 May 2025.
Start-up at the Jotun FPSO, which forms part of operator Vår Energi’s Balder X project, has been delayed to the second quarter of 2025.
Jotun FPSO start up mid-year
Kistos holds a 10% interest in the Balder Area after its acquisition of Norway’s Mime Petroleum in 2023.
At the time, Kistos said its pivot away from the UK into Norway came as a result of “punitive windfall taxes and a lack of fiscal certainty”.
Vär Energi estimates that the Balder Future project will target gross production of 80 kboepd through the Jotun FPSO and gross 2P reserves of 150 mmboe.
© Supplied by Vår EnergiKistos said the fifth phase of the Balder project is progressing with a six-well drilling campaign due to commence in the first quarter of 2025.
The campaign will use the COSL Pioneer semi-submersible drilling rig, with completion expected in 2026.
Meanwhile in the UK, Kistos said the anticipated change of operator in the Greater Laggan Area will take place in the first half of 2025.
Kistos said it expects the new operator “will provide additional momentum in sanctioning development projects to extract near-term value from the area, such as Glendronach”.
Kistos holds a 33.3% interest in the acreage alongside current operator TotalEnergies.
However, Kistos is set to have a new partner in the fields after TotalEnergies sold its oil and gas fields West of Shetland, along with the Shetland Gas Plant, to the Prax Group.
Elsewhere, Kistos said it is moving closer to a final investment decision on further expanding its recently acquired UK onshore gas storage facilities.
Following its takeover, Kistos has already increased storage at the sites by 24% to 22.1 million therms (by 24%) and “has a road map” to increase it to 35.0 million therms.
Kistos assets ‘performed well’ in 2024
Austin said the company’s production assets “performed well throughout 2024”, while the tax rebates relating to its Norwegian assets “further simplified and strengthened our balance sheet”.
“We expect to receive approximately $65 million of tax rebates in 2025 in respect of investments made during 2024, which continues to demonstrate the strong investment environment in Norway,” he said.
“With proforma net debt of approximately $45 million and strong access to liquidity, the company remains well-placed to fund existing developments and future growth opportunities.”
Meanwhile, Austin said 2025 represents a “major milestone” for Kistos with the further expansion of its production profile in Norway, driven by first oil from the Balder Future project.
“The next major development chapters in the area will also commence this year, with Balder Phase V commencing drilling, whilst we anticipate that Vär Energi will focus significant resources on maturing the Phase VI and 2C opportunities which have been identified on the Balder area,” he said.
“Coupled with planned exploration in the area, there remains material potential to convert resources to reserves, thereby extending field life and improving field economics.
“Our portfolio continues to offer significant potential organic growth opportunities, from new oil production in Norway, to gas developments in the Greater Laggan Area and expansion of capacity at our UK gas storage facility.”
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