Balder Next FID

Kistos (LON: KIST), an independent energy company focused on unlocking value within its existing portfolio and through value-accretive M&A, notes the announcement made today by Vår Energi ("Vår" or "the Operator"), the operator of the Balder Area, Norway.

Vår, in partnership with Kistos, has taken a final investment decision (FID) on the Balder Next project, which will deliver seven new production wells from the Jotun FPSO.

Andrew Austin, Executive Chairman of Kistos, commented:

"The sanctioning of the Balder Next New Wells project marks another important milestone for Kistos in the Balder Area. Building on the successful start-up of the Jotun FPSO last year, this project, comprising seven additional wells, will deliver significant additional volumes at an attractive breakeven cost of approximately USD 30 per boe while supporting sustained production from the field. Following the project's delivery, we will have increased gross production by an additional 11 mmboe from the previously communicated figure of 75 mmboe earlier this year by the Operator, bringing the total to 86 mmboe.

Our investment in Norway continues to deliver significant upside for the Company and its shareholders, highlighting the strength of the partnership with Vår in delivering high-quality, value-accretive developments on the Norwegian Continental Shelf."

Full Vår Energi press release below:

Sandnes, Norway, 18 June 2026: Vår Energi ASA (OSE: VAR, "Vår Energi") has taken final investment decision (FID) on the Balder Next New Wells project in the North Sea, progressing the next phase of development in the Balder area and supporting the Company's long-term production target.

"This project demonstrates our ability to mature and execute a portfolio of high-quality developments, excellent resource management, supporting production growth and long-term value creation. The Balder area is a key hub in our portfolio, and the Balder Next New Wells project will contribute to sustaining production from the Jotun FPSO and unlocking more resources over time," says Torger Rød, COO, Vår Energi.

The project comprises a first phase development of seven new wells tied back to the Jotun FPSO, with expected start-up in the fourth quarter of 2027. The project will develop 86 million barrels of oil equivalent (mmboe) gross in proved plus probable reserves, an increase from around 75 mmboe gross communicated earlier this year, reflecting continued improvement of the project. The project has strong economics, delivering high value, with a breakeven of around USD 30 per boe and an internal rate of return of more than 35 percent. The project is enabled by Vår Energi's project factory approach, combining standardised solutions, pre-commitments and strategic partnerships to accelerate execution and reduce time to market.

The Balder area is a core contributor to Vår Energi's production target of delivering above 400 thousand barrels of oil equivalent per day long term. Following the start-up last summer, the Jotun FPSO is enabling efficient tie-back of new wells and continued value creation over time. The Balder Next New Wells project forms part of the next phase of developments in the area and is enabled by existing infrastructure and available capacity. The development also supports the planned consolidation of infrastructure, including decommissioning of the Balder FPU from 2028, reducing operating costs and emissions.

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

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