UK-headquartered Kistos has successfully appealed against the Netherlands Ministry of Economic Affairs’ decision not to extend the term of a licence in the North Sea. As a result, the firm plans to drill an appraisal well which could lead to the production of gas through existing export infrastructure in a short timeframe.
The ruling, related to the M10/M11 licence, is effective immediately, thus, the licence is extended by five years. Kistos has a 60 per cent operated working interest in the licence while its partner, EBN, holds the remaining 40 per cent interest. This licence is in the northern area of the Dutch North Sea and is estimated to contain technically recoverable 2C resources net to Kistos of 174 Bcf or 31.7MMboe.
According to the company, stakeholder mapping in preparation for further drilling of the field has been completed. Kistos plans to apply for a permit for an appraisal well, engaging closely with the local municipalities and stakeholders prior to commencing any assessment phase planning work.
Andrew Austin , Executive Chairman of Kistos, commented: “This is very good news both for Kistos and for the Netherlands. It increases the potential for domestic gas demand to be met with domestic supplies, which has positive implications for CO2 emissions.
“Whilst the delay to the M10/M11 project has been frustrating, we are pleased that the right outcome has been achieved and look forward to working with the local municipalities to obtain the relevant permits to appraise the field. We continue to work with our partners in all three jurisdictions to mature further resources to reserves prior to year-end.”
As a result of this appeal, Kistos estimates Group 2P reserves of 36.2MMboe and 2C resources of 72.2MMboe, making the overall Group 2P reserves plus 2C resources, 108.4MMboe.
Kistos is committed to securing sustainable growth opportunities across the North Sea Basin and to this end, the firm entered the Norwegian Continental Shelf (NCS) in May 2023, after reaching a conditional agreement to acquire all of the outstanding shares of Norway’s Mime Petroleum.