Kistos Share Discussion Threads

[plasybryn] 01/4/2021 09:19

How long are we expecting to wait here to get going?

[fandagle] 30/3/2021 16:48

MM's lowering the price to let the shorters out, thats more like it....

[x54v] 18/3/2021 17:27

No probs. He has clearly given the acquisition a fair deal of thought.

A doubling of the share price on relist would certainly be welcome. Still just the start of the journey though if Rockrose is a reliable guide.

[davidbennett] 18/3/2021 17:12

x54v - that was a tremendously interesting link, thanks for posting.

I asked the question 'So based on current multiples within this industry and expected EBITDA of the acquired business, where do you think the share price will sit once readmitted to AIM? Thank you in anticipation'

The reply was: 'To simplify: I think #KIST shares could double (or near, or more, really don't know bc 1 point of multiple is an enormous difference for the equity with that leverage) from the suspension price of 167p.
3-4 bagger from the listing price in November. But as said, who knows...Crystal ball'

[thefartingcommie] 14/3/2021 09:52

Beginning of end for North Sea as ministers consider exploration ban

The radical move is on the table as part of a decisive shift away from fossil fuels and ahead of the climate summit in Glasgow this autumn
By Rachel Millard and Emma Gatten, Environment Editor 13 March 2021 • 9:30pm

Ministers are considering declaring the beginning of the end for the North Sea oil industry with a ban on new exploration licences.

The radical move is on the table as part of a decisive shift away from fossil fuels and as part of preparations for the crucial climate summit the Government is due to host in Glasgow in the autumn.

Britain is already legally bound to deliver “net zero” carbon emissions by 2050. Options being consulted on are understood to include an end to issuing licences in 2040, and an immediate temporary pause in licences. No change to the licensing regime is also possible.

One industry source said a decision is close. A ban on new licences would begin the terminal decline of British exploration in the North Sea and would be particularly controversial in Scotland.

An estimated 39pc of the 270,000 total UK jobs supported by the oil industry are in Scotland – more than any other UK region – and the SNP has relied on forecasts of future North Sea tax revenues to claim that the nation could pay its way outside the Union.

Oil and gas reserves from the UK Continental Shelf are dwindling since their heyday in the 1970s and 1980s, but had been expected to play a significant role in its long-term energy needs, as well as in production of plastics and chemicals.

More than 30pc of the UK’s electricity in 2020 was generated by gas-fired power plants, while the offshore industry met about 45pc of its overall energy needs in 2019, according to industry figures.

Although that will change as wind turbines and electric cars come to the fore, any restrictions on licences are likely to trigger debate about whether the move would simply increase Britain’s reliance on imported gas and oil, potentially increasing emissions due to transportation requirements.

One industry source said: “We are going to still need oil and gas in this country. There is a lot of excitement around Cop26 and the imperative to be seen to do the right thing.”

The Government is keen to be on the front foot ahead of the United Nations Cop26 international climate change conference the UK is hosting in Glasgow in November. Last week, ministers overruled a local authority and launched a public inquiry into whether a new mine to produce coking coal for steelmaking should be built in Cumbria, following accusations the plans would damage the UK’s international reputation on environmental issues.

Drillers and explorers have been investing heavily to cut emissions from their own operations, including by cutting flaring. Oil and gas rigs in the UK are responsible for about 10m tons of CO2 per year, about 3pc of the total.

Some have also branched out into developing carbon capture systems and hydrogen, which the Government sees as key to its push to developing a greener energy system. Last year, Denmark, once a major Western European oil and gas producer, set a precedent when it agreed to end all oil and gas exploration in the North Sea by 2050 and cancel its latest licensing round.

Environmental groups say a 2040 phase-out date is too late for the UK to reach its climate change goals.

The Government has already brought forward a ban on the sale of new petrol and diesel combustion engines to 2030.

Green MP Caroline Lucas asked Alok Sharma, Business Secretary and president of Cop26, last week whether “we might not be going ahead to get more fossil fuel explorations”.

A spokesman for the Department for Business, Energy & Industrial Strategy said: “Our review into the oil and gas licensing regime seeks to ensure it remains compatible with our target to reach net zero emissions by 2050.

“This commitment also forms part of the Energy White Paper published in December. We will agree a transformational North Sea Transition Deal with industry to create jobs, retain skills and deliver new business and trade opportunities to support the sector’s transition to a lower-carbon future.”

[welshborderer] 13/3/2021 13:09

Malcy seems happy too with this reverse takeover of a sizeable company with cashflows and profitability



"So, Andrew Austin has delivered a deal as promised and one of size and also within the indicated timescale. Indeed while on promises he has delivered a deal that is in energy transition and in gas and taking a look at the ‘greenness’ of the deal I can’t see anything on the radar screen with such carbon credentials – bar none.

The size may be slightly larger than I expected but then never say that with AA of course and with the shares now suspended as it is an RTO and needs a bond issue which is likely already underwritten and an equity raise to sort out in the next few weeks. Kistos has started with a clean sheet and already added the greenest deal around which makes a lot of sense on an economic basis and points us in the future direction of travel.

In terms of this as a starter deal it looks very exciting indeed, it includes a great deal of already discovered hydrocarbons so the pressure is off to a certain extent to do another deal in a hurry although that has never stopped AA before…"

[gf123] 13/3/2021 09:19

People happy here? In at £1.06 myself and always been a long term hold. Seen some mixed opinions and a few saying quite an expensive dealObviously we need more information and Andrew seems to be excited and the interview should help provide a bit more clarityHappy to be locked in with what you know so far?

[fandagle] 13/3/2021 06:59

The de-merger will take a while, we are looking at up to 4 months for KISTOS share to re-list

[fandagle] 12/3/2021 19:01

It will defo drop back, come on guys, its a longer term investment for sure..

[davidbennett] 12/3/2021 18:03

More like 200p +

[chutes01] 12/3/2021 17:49

back to 120p ?

[plasybryn] 12/3/2021 17:42

I was going for a modern green sector growth stock. Was I expecting too much?

[chutes01] 12/3/2021 13:42

i agree with that, watch it go over next few months
Tom Cross has annoyed certain investors and they walked away, but PMG are in the right place now, and off radar so far, interims end of month is the strart of news flow.

[yellowdog] 12/3/2021 12:48

Or buy PMG now. EV £18m. Already have the gas fields in Holland, £20m in cash, green energy wind farm projects on the go, and lots of other prospects in the North Sea ticking along.

If AA had just bought PMG its share price would be 80p/90p.

KIST is a good story but it can be purchased for 38p by buying PMG !!!

[anley] 12/3/2021 12:18

At last AA has a deal full of debt so well done.

It is too early to start picking it apart but just a few headings:

Loan from TONO and New Debt still to figured out.
Equity issue + Warrents to TONO

(Keep in mind that KIST on suspension - Price 166p and M/Cap £67m and only cash of ????)

Norwegian Bank and Oslo Exchange for debt placing - similar to IOG and the Euro's they raised

And finally another 163m euro's called "final consideration on certain future developments"...........meaning if we find more or less gas then we pay up or not and that will mean a very complicated legal document full of oil terms and conditions.

Will be interesting to read how much the City takes for advice/legal etc in fees.

I WILL NOT MAKE ANOTHER POST UNTIL THE NEW PROSPECTUS IS PUBLISHED - allow up to 2/3 months.

[fozzie] 12/3/2021 11:51

It’s still wait and see here for me. I invested wholly in the belief that AA can do another Rockrose, just got to let him get on and do it imo.

[ellemaitch] 12/3/2021 11:38

Thats anyones guess - but this is no lifestyle company . AA diluted along the way on Rockrose but still gave shareholders a 47x ROI . The team will extract further value from the asset whilst being cash generative . Institutions have to be looked after along the way

[senn1] 12/3/2021 11:26

But is that from the IPO of £1 or £1.70

equity part could be £1.20

Any thoughts ellie

[fullbreakfast] 12/3/2021 11:24

Look at it this way: the existence of a structure that could result in an additional €163m being paid out based on milestones, which AA would only have agreed to if it still left a large slice of the upside relating to those milestones in the hands of KIST, implies a belief on both sides that the current 2P assets of Tulip are very far from the whole story on the potential value here.

[ellemaitch] 12/3/2021 11:07

If you read the RNS properly and do some research , u may be surprised . Post IPO , AA stated that they would be able to do a deal for circa £100m with a debt / equity split without dilution . There is a 87m Euro senior 5 year bond already in place . There will be a new debt instrument . AA has always wanted to be back under 30% , so potentially wont take up much of the placing personally and therefore wont want to dilute himself / reduce the value of his own holdings by too much . There are institutions that werent able to get involved due to their own fund restrictions but can now . Remember , there are " keep the lights on placings " , " working capital placings " and then there are placings for acquisitions ! all very different . Anyway ,first deal done within timescales stated previously

[thefartingcommie] 12/3/2021 10:58

reading through your comments it seems,that whilst no-one has clearly stated as much...a fairly hefty discount and dilution is on the cards.

[fullbreakfast] 12/3/2021 10:36

But what's the 163 million payable on milestones about wtf

Presumably we're here because we believe in AA's ability to do value-accretive deals. I doubt he's taken leave of his senses, so probably we shouldn't rush to judgment on things like this without having the actual detail.

We should probably be hoping that the €163m ends up being payable in full, as I expect the milestones will be such that this would mean huge value had been added to Kistos by the Tulip assets.

[welshborderer] 12/3/2021 09:50

History repeating with further acquisitions indicated. Very interested in the future but curious as to how they manage to assist retail investors using CREST to be able to get into the placing when that arises as my broker seems inconsistent in this regard.

[senn1] 12/3/2021 09:02

Not sure I like it 220 mill is a lot for what they have.

But what's the 163 million payable on milestones about wtf