Kistos Gains as Balder Field Exceeds Production Expectations

Independent energy company Kistos (LON:KIST) released a trading and operational update ahead of its half-year results for the period ended June 30, 2025, sending its shares higher on Wednesday.

The highlight of the update is the rapid ramp-up of the Balder Future project, which has reached peak production ahead of schedule.

Kistos shares have gained more than 3% following the update, trading around the 167.5p mark.

The Jotun FPSO (Floating Production, Storage and Offloading) vessel came onstream on June 22, 2025, with all 14 subsea production wells now online and performing as expected.

The company added that production from the Jotun FPSO currently exceeds 80,000 barrels of oil equivalent per day (boepd), augmenting the 30,000 boepd from the Balder FPU (Floating Production Unit) and Ringhorne facilities. This brings the total output for the Balder Area to over 110,000 boepd (gross), of which Kistos holds a 10% stake.

Balder Phase V is progressing with six new multi-branch subsea production wells underway, expected to mirror the production rates and reserves of the Balder Future project wells.

The first two Phase V wells are slated to come online in Q4 2025, with the remaining wells to be completed during 2026. Balder Phase VI, consisting of a single multi-lateral well tied back to the Jotun FPSO, is also moving forward, targeting approximately 15 mmboe (gross) in reserves with an anticipated start-up by the end of 2026.

Q10-A production experienced headwinds in the first half of 2025 due to a prolonged shutdown of the TAQA-operated P15-D platform. However, Kistos expects a partial offset from flush production following the restart on July 16, 2025. GLA production aligned with management expectations, and the imminent start-up of the Shell-operated Victory gas field is projected to deliver significant OPEX savings for the GLA partners. TotalEnergies has maintained its 40% stake in the GLA.

Kistos anticipates a Final Investment Decision (FID) on the Hole House re-instatement in late Q3 2025. A positive FID is expected to increase working capacity by a further 63%.

The company reaffirmed its full-year average daily production guidance of 8,000 – 9,000 boepd, noting that daily production reached 16,000 boepd on September 8th. Cash reserves stood at $104 million as of June 30, 2025 (with $20 million restricted), down from $143 million at the end of 2024, reflecting substantial capital expenditure on the Balder Future project. Net debt at the end of the period was $86 million.

Andrew Austin, Executive Chairman of Kistos, commented: “With our partner Var, we set out a very clear priority at the beginning of the year to deliver the Balder Future development project. Not only have we achieved first oil by the half-year-end, but we have also accelerated the production ramp-up to reach peak production well ahead of schedule.”

Austin added, “Total Group production hit 16,000 boepd on the 8th September…further near-term development of the Balder Area is now ongoing, unlocking additional value at a low cost with greater certainty.”