Fossil Energy – Greater Laggan Area
Gas producer Kistos completed the acquisition of a 20% interest in the Greater Laggan Area (GLA) producing gas fields and associated infrastructure on Monday, from TotalEnergies.
The AIM-traded firm said the acquisition also included various interests in other exploration licences, including a 25% interest in the Benriach prospect, with the effective date of the acquisition being 1 January.
It said completion marked its entry into the UK Continental Shelf (UKCS), adding around a net 6,000 barrels of oil equivalent per day to its production in 2022, with 2P reserves increasing by 6.2 million barrels of oil equivalent.
Kistos said the acquisition included a 20% working interest in the producing Laggan, Tormore, Edradour, and Glenlivet gas fields, located offshore in the West of Shetland.
The acquisition included a 20% interest in the undeveloped Glendronach gas field, which was discovered in 2018 and was expected to use existing infrastructure, with a final investment decision anticipated later in the year.
It also included a 25% interest in block 206/4a, which contains the 638 billion cubic feet Benriach prospect.
Glendronach would be developed via a single production well, with the net cost of the project estimated to be about £20m, and Kistos’ share of that to be subject to the super deduction in the UK’s Energy Profits Levy.