Kistos complete Tulip deal, eyes appraisal drilling in second half of 2021


Kistos PLC (LON:KIST) has completed its acquisition of Tulip Oil Netherlands which the company describes as a low-cost and low-carbon producer.

The deal is worth €220mln and it delivers the producing Q10-A offshore gas field plus the Q10-B, Q11-B and M10/M11 discoveries.

Q10-A is described as “probably the lowest carbon footprint of any production assets in the North Sea”. It is powered by solar and wind power, and future expansion is planned to follow this approach too.

The transactions effective date is January 1 2021, and the company noted that production in the year to date has been in-line with expectations whilst gas prices have been higher than assumed previously (in its admission document).

The company said it had £46.8mln of cash in the bank, implying net debt of £82.2mln.

Additionally, Kistos said it has now sanctioned, subject to partner approval, the appraisal of the Q11-B discovery as well as a drilling and workover campaign on the Q10-A field.

Drilling is expected to start in the second half of 2021.

“We are very excited for the future of Kistos, with a proven low cost production base from the Q10-A field and two further appraisal wells planned this year, we look forward to extending our reserves base and increasing our presence in the Q Block core area,” said interim chief executive Andrew Austin.


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