Kistos Energy (Norway) AS (KENAS) update for the third quarter of 2023

Operational

In the third quarter of 2023, production from the Balder Area has averaged
approximately 2069 b/d net to KENAS. However, partly due to a planned turnaround
period, which was completed on schedule in August, the average rate net to KENAS
in the first nine months of the year was 1839b/d. Output has been positively
impacted by the restart of the gas lift riser to Ringhorne, which was
temporarily shut-in during the first quarter and was permanently replaced in the
third quarter during the planned Balder and Ringhorne turnaround. A new well at
Ringhorne was brought on stream during the quarter. Due to the planned
turnaround, production efficiency for Balder/Ringhorne was 79% in the third
quarter versus 82% in the second quarter.

The upgrade of the Jotun FPSO for the Balder Future development project is
ongoing. Following the re-float of the vessel out of dry-dock in late in June
and the subsequent safe completion of the heavy-lift installation of the turret,
turntable, and gantry in July, the focus of the operator (Vår Energi ASA) is on
executing the remaining construction work and commissioning. The operator has
reported that the Jotun FPSO is more than 85% complete and that its target
start-up date for Balder X is still the third quarter of 2024.

Drilling and subsea activities are progressing according to schedule, with 9 out
of 15 wells completed. The operator did not amend its 2P reserves estimate for
the Balder Area during the period. As of December 31, 2022, KENAS estimated its
2P reserves to be 24 MMboe.

Financial

In the third quarter, 4 cargoes of crude oil were loaded from the Balder FPU.
Net to KENAS, these totaled 205 kbbl, which realised an average provisional
price of USD 82.96 per bbl. At the end of the period, KENAS had cash at bank of
USD 6.3 MM, of which USD 0.4 MM was restricted. YTD, KENAS had drawn USD 48 MM
under the terms of the revolving credit facility from its parent company, Kistos
plc. During the period, Vår Energi announced an increase in its gross capital
expenditure estimate for Balder X. It stated that the additional expenditure is
necessary due to a tighter supplier market, to mitigate schedule risk, and to
improve construction productivity.

For further information please contact:
Olav Haugland 
Chief Financial Officer (Kistos Energy (Norway) AS) 
Phone: [phone] 
Email: [e-mail]

Richard Slape 
Chief Financial Officer (Kistos Holdings plc)
Phone: [phone] 
Email: [e-mail]

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