Jotun FPSO First Oil

Kistos (LON: KIST), an independent energy company focused on generating value across the upstream and midstream markets, notes the announcement made today by Vår Energi, the operator of the Balder Area, Norway, confirming the start of production from the Jotun FPSO.

Andrew Austin, Executive Chairman of Kistos, commented:

"First oil from the Balder Future project is a significant milestone for Kistos. Working alongside our partner in the Balder Area, this provides the foundation for further incremental value accretion from our interest in Norway. With production set to ramp up over the next few months, adding 8,000 boepd (net) to our existing 3,000 boepd (net) from the wider Balder Area, peak production in Norway is expected to exceed 11,000 boepd (net). These low-cost barrels will notably increase the oil weighting of our portfolio and deliver significant cashflow.

"Utilising the infrastructure now in place, Balder Phase V and the recently sanctioned Phase VI project will bring new production wells onstream as early as this year, accelerating the conversion of 2C resources to 2P reserves and offering fast-track developments to sustain long-term, high-value production.

Our entry into Norway, has delivered significant upside for the Company and its shareholders, for a nominal consideration with significant mitigations put in place around the timing of the completion of the Balder Future project. It highlights the importance that we will always place as a management team on identifying opportunities which offer significant near-term value accretion, at the right price and on the right terms.

Full Vår Energi press release below:

Sandnes, Norway, 23 June 2025: Vår Energi today successfully started production through the Jotun FSPO. This marks the start of a new era for the Balder field in the North Sea, extending the life of the first production licence, PL001, on the Norwegian Continental Shelf, adding high value barrels towards 2045 and beyond.

By bringing the Jotun FPSO onstream, production is expected, within three to four months after start-up, to increase by approximately 80 thousand barrels of oil equivalent per day (kboepd) gross, on top of the current production of approximately 30 kboepd gross through the Balder FPU and Ringhorne facilities. The Jotun FPSO will have a low operating cost of around USD 5 per barrel and estimated gross proved plus probable recoverable reserves from the project at 150 million barrels of oil equivalent (mmboe).

"Vår Energi is set for transformative growth in 2025. Together with the recent start-ups of Halten East and Johan Castberg, this marks a key milestone in reaching our production target of more than 400 kboepd in the fourth quarter of this year. Furthermore, with infrastructure and facilities designed to extend production beyond 2045, the start-up of the Jotun FPSO opens up wide potential for continued value creation from the area. I wish to extend the Company's gratitude to the people in the project organisation, our suppliers, employee representatives and our partner for the strong dedication and collaborative efforts required in successfully completing this complex project. Also, the support by the Norwegian authorities has been fundamental, and much appreciated," said Nick Walker, CEO of Vår Energi.

All 14 production wells have been completed and will be brought onstream during the ramp-up period to reach peak production. Together with the Balder Phase V project starting up later this year, the project has a payback time of around two years¹. In addition, with the Jotun FPSO installed as an area host, Vår Energi is taking necessary steps to add new production through infill drilling, exploration and tie-back developments with short time to market.

Vår Energi is operator (90%) of the Balder field, with Kistos Energy Norway AS as partner (10%).

From production start-up