Kistos Holdings plc has entered the Middle East with “immediately cash-generative” working interest acquisitions for $148 million in three blocks, onshore Oman.
RESILIENT
The company signed the binding agreement with Mitsui E&P Middle East B.V., effective 1 January 2025, for 5% in block 9, and 20% in blocks 3 and 4.
Block 9 covers two producing areas, while blocks 3 and 4 comprise seven producing fields over some 29,000 km² in eastern Oman.
Texas-based Occidental Petroleum and Omani company CC Energy Development operate each acquisition, respectively.
An exploration and production sharing agreement covers each block.
Kistos said that the new interests were expected to add 25.6 million barrels of oil equivalent of 2P reserves net to the company, as at 1 January 2025, based on operators’ estimates.
An additional estimated production of approximately 9,000-10,000 boepd net to Kistos in 2025, is comprised of around 91% liquids and 9% gas.
The company will use existing cash for the purchase, which remains subject to governmental, regulatory and partner approvals.
Executive chairman Andrew Austin added: “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.”
He added that Kistos would continue to consider the North Sea for further acquisitions while potentially expanding in the Middle East and North Africa.