Kistos Holdings PLC Acquisition Completion of Gas Storage Assets

RNS Number : 6540L

Kistos Holdings PLC

23 April 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (UK MAR). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

23 April 2024

 

 

Kistos Holdings plc

 

("Kistos" or "the Company")

 

Completion of Acquisition of UK Onshore Gas Storage Assets

 

 

Kistos (LSE: KIST), is pleased to announce the completion of the acquisition of 100% of the share capital of EDF Energy (Gas Storage) Limited from EDF Energy (Thermal Generation) Limited (the "Transaction"), further to its announcement on 20 February 2024. The assets acquired comprise of two gas storage facilities onshore in the UK, Hill Top Farm ("Hill Top") and Hole House Farm ("Hole House"), for a total consideration of £25 million (from existing cash resources) for the Transaction.

 

·    Following the approval of Kistos by the government under the National Security and Investment Act (NSIA), the transaction marks Kistos' entry into the gas storage sector providing business diversity to its upstream portfolio.

 

·    Hill Top's working gas capacity is 17.8 million therms, with an ongoing programme to increase this volume to 21.2 million therms in the short term.

 

·    Hill Top currently accounts for 3.1% of the UK's total available onshore gas storage capacity and, due to the fast cycle nature of the facility, can deliver up to 11% of the UK's flexible daily gas capacity if called upon.  

 

·    The Hole House facility, at which operations have been suspended since 2018, provides an option to increase the Company's proportion of the UK's total onshore gas storage materially with reactivation. Delivering a plan to get these facilities back online is a priority post completion.

 

·    As the UK generates increasing amounts of electricity from intermittent renewable sources, the times when fast-cycle storage assets are required to balance the system are also set to increase. This provides the basis for gas storage assets to be a key pillar of the energy transition.

 

·    Both facilities have the potential to be repurposed for future energy storage uses, including the storage of compressed air or hydrogen, and concept studies are underway.

 

·    Kistos has assumed operatorship of both sites.

 

  

 

Commenting on the acquisition, Andrew Austin, Kistos' Executive Chairman, said:

 

"We look forward to working with the existing team with a view to maximising the value-accretive opportunities these gas storage facilities present, establishing Kistos' presence across the energy value chain with a foothold in the midstream market. Over the longer term, we will also be evaluating our options to further expand operations via other energy storage sources such as compressed air or hydrogen."

 

 

Enquiries

 

Kistos Holdings plc Andrew Austin / Peter Mann	via Hawthorn Advisors
Panmure Gordon (NOMAD, Joint Broker) James Sinclair-Ford / Dougie McLeod	Tel: [phone]
Berenberg (Joint Broker) Matthew Armitt / Ciaran Walsh	Tel: [phone]
Hawthorn Advisors (Public Relations Advisor) Henry Lerwill / Simon Woods	Tel: [phone]
Camarco (Public Relations Advisor) Billy Clegg	Tel: [phone]

 

Notes to editors

 

Kistos plc was established to acquire and manage companies in the energy sector engaging in the energy transition trend. The Company has undertaken a series of transactions including the acquisition of a portfolio of highly cash generative natural gas production assets in the Netherlands from Tulip Oil Netherlands B.V. in 2021. This was followed in July 2022, with the acquisition of a 20% interest in the Greater Laggan Area (GLA) from TotalEnergies, which includes four producing gas fields and a development project. In May 2023, Kistos completed its third acquisition, acquiring the total share capital of Mime Petroleum and its Norwegian Continental Shelf Assets. These comprise a 10% stake in the Balder joint venture spanning Balder and Ringhorne oil fields.

 

Kistos is a low carbon intensity gas producer with Estimated Scope 1 CO₂ emissions from its operated activities offshore of less than 0.01 kg/boe in 2022 (excluding necessary flaring during drilling campaigns).

 

www.kistosplc.com 

 

ENDS

 

 

 

 

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