Kistos (LSE: KIST) successfully appeals the Netherlands Ministry of Economic Affairs’ decision and receives a five-year extension on its license.
This announcement relates to Kistos’ M10/M11 license in the Netherlands and will net the firm 174 Bcf or 31.7 million barrels of oil equivalent (MMboe).
The report that found the recoverable assets from the field was independently compiled in a technical report undertaken by a third party in accordance with the Petroleum Resources Management System (PRMS) standards for classification and reporting.
Now that its appeal has been approved, Kistos will apply for a permit for an appraisal well at the site.
It says it will be “engaging closely with the local municipalities and stakeholders prior to commencing any assessment phase planning work.”
Kistos owns a 60% share in the license with the remaining 40% being claimed by EBN.
Andrew Austin, executive chairman of Kistos, said: “This is very good news both for Kistos and for the Netherlands.
“It increases the potential for domestic gas demand to be met with domestic supplies, which has positive implications for CO2 emissions.
“Whilst the delay to the M10/M11 project has been frustrating, we are pleased that the right outcome has been achieved and look forward to working with the local municipalities to obtain the relevant permits to appraise the field.
“We continue to work with our partners in all three jurisdictions to mature further resources to reserves prior to year end.”
Kistos turns away from UK over ‘lack of fiscal certainty’
Kistos recently announced that it would be looking to Norway as it sets out to acquire Mime Petroleum, citing “windfall taxes and a lack of fiscal certainty” for the lack of UK investment.
Kistos aims to buy all of Mime’s outstanding shares, as it sees its predicted production rates increasing to 80 million barrels of oil equivalent (MMboe).
The acquisition will adds over 2,000 barrels of oil equivalent per day (boe/d) to Kistos’ portfolio, meaning the firm will produce more than 15,000 boe/d in 2025, once the Jotun FPSO begins production.
Current estimates predict between 8,500 and 10,500boe/d throughout 2023.