Kistos (AIM: KIST), a joint venture partner in the Balder and Ringhorne oil and gas fields in Norway, notes the announcement made this morning by Var Energi ASA ("the Operator"), confirming that the upgrade of the Joutun FPSO is 90% complete and that first oil is now anticipated to be the end of Q4 2024.
Kistos is encouraged by recent activity, in particular the progress the Operator has made in working to convert more of the established 2C resources into sanctioned reserves through the ongoing drilling programme. The Company will continue to update the market in line with the Operator.
In the event that first production is not achieved until 2025, due to the structure agreed upon through the acquisition of Mime Petroleum A.S. in 2023, the economics of the acquisition mitigate any effects of a delay by reducing the contingent consideration payable by Kistos to the Mime Petroleum bondholders.
