LONDON (ShareCast) - (Sharecast News) - North Sea operator Kistos Holdings said on Wednesday that a key project was on track to deliver first oil this year, as it confirmed 2024 production had met expectations.
Updating on trading ahead of final results, the AIM-listed energy firm said pro-forma production for 2024 had averaged 8,050 barrels of oil equivalent per day (boepd), in line with guidance.

Net debt, meanwhile, stood at $45m at the year end, and total cash at $144m, following the receipt of tax rebates from the Norwegian government in December.

Looking to the current year, Kistos said production was likely to come in between 8,000 and 9,000 boepd, with more tax rebates also due.

In addition, a six-well drilling campaign is due to start in the first quarter at Balder Future, offshore Norway, leaving the project on track for first oil by mid-2025.

Andrew Austin, executive chair, said: "As we enter 2025, a major milestone remains the further expansion of our production profile in Norway, driven by first oil from the Balder Future development.

"Our portfolio continues to offer significant potential organic growth opportunities, from new oil production in Norway to gas developments in the Greater Laggan Area and expansion of capacity of our UK gas storage facility."

Acquisitions also remained a possibility, he added, "given our robust cash position".

As at 1115 GMT, shares in Kistos had put on 2% at 115.9p.

James Carmichael, analyst at Berenberg, said Balder Future "should increase production and generate long-term value for the company.

"We also note future potential upside in the UK gas storage business, and potential for additional investment in the offshore UK portfolio, once operatorship is transferred in the first half of 2025.

"Overall we believe Kistos is in good shape."

Berenberg has a 'buy' recommendation on the stock.

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