Kistos Energy (Norway) AS (“KENAS”) update for the fourth quarter of 2024

12 Feb 2025 12:59 CET

OPERATIONAL
Production from the Balder Area has been stable during the year. Production was
2,717 b/d net to KENAS in the fourth quarter of 2024, with production efficiency
of 90%. This compared to 2,673 b/d and 85% production efficiency in the third
quarter of 2024. KENAS holds 10% ownership interest in the Balder/Ringhorne
field, and a 7.4% ownership interest in the Ringhorne Øst Unit.

BALDER X
The Balder X project is a key enabler to both Kistos and the Operator, Vår
Energi ASA, to continue to deliver future value in the Balder area. The project
will secure production from the Balder Area beyond 2045, unlocking gross proved
plus probable (2P) reserves of around 150 mmboe and with a gross peak production
from the Jotun FPSO of 80 kboepd. Further, the Operator informs that all
development wells are completed, and all subsea production systems are
installed. The Jotun FPSO is mechanically complete, and commissioning is well
advanced. Sail away of the FPSO is planned in March, subject to favorable
weather conditions, and start-up is targeted by the end of the second quarter of
2025.

The Jotun FPSO will be an area host, enabling future growth opportunities. The
Balder Phase V project has been sanctioned, including the planned drilling of
six production wells to utilise the remaining subsea template well slots to
capture gross 2P reserves in the range of 34-38 mmboe. Drilling of these wells
will commence in the first half of 2025 and oil production from the initial
wells is expected towards the end of 2025.

In addition, the Balder Phase VI project is being matured, with planned project
sanction in 2025. The project has a recoverable resource range of 7-16 mmboe
gross, to be developed with a single multilateral well subsea tied-back to the
Jotun FPSO. There remains significant additional resource upside in the area and
further exploration drilling and tieback development phases are being planned.

The operator has released its “Annual statement of reserves 2025” in which it
estimated gross 2P reserves for the Balder Area at 209 MMboe. KENAS’ 2P reserves
estimate at yearend 2024 is 21.2 MMboe (net to KENAS).


FINANCIAL
KENAS entered a financing and lifting agreement (a produced quantity or PQ
arrangement) with an international oil major commencing in January 2024. Under
the terms of this arrangement, KENAS is paid for its production on a monthly
basis but the offtaker only lifts KENAS’ entitlement of crude oil once it is
sufficient to fill an offload tanker.

At the end of December 2024, KENAS had cash at bank of USD 18.7 million, of
which USD 0.3 million is restricted. KENAS had not drawn any amount under the
terms of the revolving credit facility from its parent company, Kistos plc, at
the end of the fourth quarter of 2024.

In accordance with the Hybrid callable bonds 2023/2083 (ISIN:NO0012867326)
agreement clause 11.1 item (a) (ii) KENAS has notified the Bond Trustee that the
Offload and Sales threshold was not achieved by 31 December 2024, hence bonds in
an aggregate nominal amount of USD 15,000,000 was cancelled for nil
consideration on 10 January 2025 with the record date being 8 January 2025.

Further, and also in accordance with the Hybrid callable bonds 2023/2083
(ISIN:NO0012867326) agreement, KENAS has notified the Bond trustee that the
second Offload and Sales threshold will not be achieved by 28 February 2025. The
implication of this is that additional bonds with a nominal amount of USD
15,000,000 will be cancelled for nil consideration on or about 3 March 2025.

The Company received a total tax refund of NOK 939 million in December,
including interest of NOK 38 million, for the fiscal year 2023. The tax refund
for fiscal year 2024 is estimated to NOK 745 million, excluding interest. This
amount is expected to be received early December 2025.

For further information please contact:
Olav Haugland
Chief Financial Officer (Kistos Energy (Norway) AS)
Phone: +47 915 41 809
Email: olav.haugland@kistosplc.com

James Thomson
Chief Financial Officer (Kistos Holdings plc)
Phone: +44 7495 122576
Email: james.thomson@kistosplc.com

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