Acquisition of a 30% interest in the Abbey and Baker gas developments, UK Southern North Sea
Kistos (LON: KIST), an independent energy company focused on unlocking value within its existing portfolio and through value-accretive M&A, is pleased to announce that its wholly-owned subsidiary, Kistos Energy Limited, has entered into a binding farmout agreement with Petrogas North Sea Limited ("Petrogas") to acquire a 30% non-operated working interest in the UK Seaward Production Licences containing the Abbey and Baker gas fields, together with a 30% interest in the associated infrastructure (the "Acquisition").
Further information on the consideration, completion mechanics and the financial impact on the Company will be announced on completion.
Acquisition highlights:
- The Acquisition is expected to add approximately 9 mmboe of net 2P reserves (Company estimates) upon a final investment decision, which is anticipated in 2027, increasing the Group's pro forma 2P reserves(1) to approximately 59 mmboe (from 49.2 mmboe as at 30 June 2026)
- Gas-weighted development (approximately 98% gas), with first gas targeted in 2029 and estimated net plateau production of approximately 4,000 boepd
- Significantly de-risked development, with a recent discovery and appraisal well successfully drilled on Baker and Abbey, respectively, the development concept selected and key engineering studies completed, and the draft Field Development Plan and Environmental Statement submitted in July 2026
- Value-accretive acquisition at an attractive entry cost, which is synergistic with Kistos' existing tax position
The Acquisition adds long-term UK gas production, complementing the Group's existing North Sea portfolio.
The Abbey and Baker gas fields are located in the UK Southern Gas Basin, in water depths of approximately 40 metres. Baker was discovered in 2024 and Abbey was successfully appraised in 2025. The planned development comprises four wells across the two fields, tied back subsea to an existing nearby platform, with gas exported into the UK National Transmission System. Gross production is expected to peak at approximately 18,000 boepd.
Petrogas has operated the fields since 2022 and, following completion, will remain the operator with a 70% working interest alongside Kistos's 30%.
Completion of the Acquisition is subject to North Sea Transition Authority ("NSTA") consent and other customary conditions, and is expected before the end of 2026.
Andrew Austin, Executive Chairman, commented:
"This value-accretive acquisition adds a high-quality, gas-weighted development to our UK portfolio at an attractive entry point.
The UK will continue to depend on domestic gas supply for many years to come, and Abbey and Baker provide Kistos with long-term gas production, building on our existing North Sea gas business.
We are delighted to be partnering again with Petrogas, an operator we know well and whose technical work on these fields has been of a very high standard. We look forward to working with them to bring the development through to first gas."
Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelor's, Master's and PhD in Geosciences and who has been involved in the energy industry for more than 40 years, has read and approved the disclosure in this announcement.
The estimates of reserves contained in this announcement are the Company's estimates, which are closely aligned with the operator's estimates, and were prepared in accordance with the Petroleum Resource Management System guidelines endorsed by the Society of Petroleum Engineers, World Petroleum Congress, American Association of Petroleum Geologists and Society of Petroleum Evaluation Engineers.
Notes:
(1) Pro forma 2P reserves are the Group's 2P reserves as at 30 June 2026, adjusted to include the reserves attributable to the Acquisition and to the acquisitions of Oman Blocks 3 & 4 and Block 9, as if each of those acquisitions had completed on 30 June 2026.
ENDS