REG - Kistos Holdings PLC - Acquisition - Block 9 and Block 3 & 4, Oman

Kistos HoldingsAnnouncement

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RNS Number : 8038K  Kistos Holdings PLC  09 December 2025

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

Andrew Austin / Peter Mann

 Panmure Liberum (NOMAD, Joint Broker)                             Tel: 0207 886 2500

James Sinclair-Ford / Freddie Wooding / Mark Murphy / Sam Elder

 Berenberg (Joint Broker)                                          Tel: 0203 207 7800

Matthew Armitt / Ciaran Walsh

 Hawthorn Advisors (Public Relations Advisor)                      Tel: 0203 745 4960

Henry Lerwill / Simon Woods
 Camarco (Public Relations Advisor)                                Tel: 0203 757 4983

Billy Clegg

 

https://www.kistosplc.com (https://www.kistosplc.com/)

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