THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
9 December 2025
Kistos Holdings plc
("Kistos" or the "Company")
Acquisition of interests in Block 9 and Blocks 3 & 4, onshore Oman
Immediately cash-generative acquisition represents an entry point for Kistos in MENA with scope for further expansion in the region
Kistos (LSE: KIST), an independent energy company focused on generating value across the upstream and midstream markets, is pleased to announce that it has entered into a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 & 4 from Mitsui E&P Middle East B.V., both located onshore in the Sultanate of Oman (the "Acquisition").
Acquisition highlights:
· Consideration of $148 million, with an effective date of 1 January 2025 which is subject to customary closing adjustments, payable on completion and will be funded with existing cash in Kistos
· Expected to add 25.6 mmboe (operators estimates) of 2P reserves net to Kistos (as at 1 January 2025)
· Additional estimated production of approximately 9,000-10,000 boepd net to Kistos in 2025, made up of approximately 91% liquids with the remainder gas
· The Acquisition is expected to be immediately cash-generative
· The Acquisition equates to a valuation of approximately $5.80/boe of 2P reserves
Kistos' entry into the Middle East adds geographical and onshore production diversification to the Company's existing portfolio. Representing an evolution in the Company's M&A strategy, the Acquisition aligns with the Board's core ambition of pursuing assets that have strong near-term production with significant development and exploration upside.
Block 9, operated by Occidental Petroleum, covers two producing areas. Blocks 3 & 4, operated by CCED, comprise seven producing fields and cover approximately 29,000 km² in eastern Oman.
Both Block 9 and Blocks 3 & 4 are governed by Exploration and Production Sharing Agreements (each one being an "EPSA"). The Omani EPSA is a well-developed and accepted framework that includes the concession area and term, payment mechanisms, and the conditions under which exploration, appraisal, commercial discovery, and extraction are to take place.
Completion of the Acquisition is subject to customary governmental and regulatory approvals and partner consents. Further announcements will be provided in due course, upon completion of the Acquisition, including any information on completion mechanics and the financial impact of the transaction on the Company.
Andrew Austin, Executive Chairman, commented:
"This acquisition marks a significant milestone for Kistos as we expand our footprint into a new and strategically important region, acquiring interests which align with our strategy of acquiring high-quality value-accretive assets, in both the near and long term.
Our entry into the MENA region represents an important step forward in our mission to build a resilient, future-facing energy company. It not only complements our existing portfolio in the North Sea but also provides a platform for long-term growth and enhanced cash flow. Effective 1 January 2025, this acquisition will increase our reserves to 50 mmboe and is expected to deliver a material uplift in Kistos' production in 2026 to approximately 20,000 boepd.
While we continue to consider the North Sea for further acquisitions, we view this foundational step into the MENA region as a way to diversify our portfolio, allowing us to broaden the opportunities we look at, potentially unlocking future synergies through further expansion in the region.
On behalf of the Board, I would like to thank our shareholders for their continued support and look forward to sharing further updates as we continue to grow and evolve."
Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelors, Masters and PhD in Geosciences and who has been involved in the energy industry for more than 40 years, has read and approved the disclosure in this announcement.
The Company's internal estimates of resources contained in this announcement were prepared in accordance with the Petroleum Resource Management System guidelines endorsed by the Society of Petroleum Engineers, World Petroleum Congress, American Association of Petroleum Geologists and Society of Petroleum Evaluation Engineers.
ENDS
Glossary
| 2C resources | those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, but which are not currently considered to be commercially recoverable owing to one or more contingencies |
| 2P reserves | the sum of proved and probable reserves, denotes the best estimate scenario of reserves |
| boe | barrels of oil equivalent |
| boepd | barrels of oil equivalent per day |
| CCED | CC Energy Development |
| EPSA | The terms of the Exploration and Production Sharing Agreements ("EPSAs") are confidential; however, they typically allow the joint operating partners to recover their costs up to 40 percent of the value of total oil production on an annual basis, which is referred to as 'cost oil'. After deducting any allowance for cost oil, the remaining production is typically split 80/20 between the government ("government take") and the joint operating partners, as quoted by Tethys (partners in Blocks 3 & 4) in their annual report 2024 (page 59). |
| kboepd | thousand barrels of oil equivalent per day |
| MENA | Middle East and North Africa |
| mmboe | millions of barrels of oil equivalent |
Enquiries
| Kistos Holdings plc
| via Hawthorn Advisors |
| Panmure Liberum (NOMAD, Joint Broker)
| Tel: 0207 886 2500 |
| Berenberg (Joint Broker)
| Tel: 0203 207 7800 |
| Hawthorn Advisors (Public Relations Advisor) | Tel: 0203 745 4960 |
| Camarco (Public Relations Advisor) | Tel: 0203 757 4983 |
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