23rd May 2023 10:22
(Alliance News) - Kistos Holdings PLC on Tuesday said that it has completed its acquisition of all the outstanding shares of Mime Petroleum AS from Mime Petroleum Sarl.
Kistos is a London-based low carbon intensity hydrocarbon producer, pursuing a strategy to acquire assets with a role in energy transition.
Through its wholly owned subsidiary, Kistos PLC, Kistos has acquired 100% of the issued and to be issued share capital of Mime.
The consideration was USD1, plus the issue of up to 6 million warrants exercisable into new Kistos ordinary shares, at a price of 385 pence each.
Mime will repay USD75 million of its debt, and the enlarged group will assume the remaining USD225 million.
A payment to Mime's bondholders of up to USD45 million in 2025 is contingent on certain operational milestones being achieved. The Mime debt being retained by Kistos equates to approximately USD111 million.
Kistos emphasised that the acquisition marked its entry into the Norwegian Continental Shelf, increasing total reserves plus resources to 80 million barrels of oil equivalent per day.
"Our entry into Norway signifies our commitment to securing sustainable growth opportunities across the North Sea Basin and positions us as an influential independent producer across three jurisdictions," said Executive Chair Andrew Austin.
He added: "Mime's assets give us visibility on a rising production profile over the next few years whilst enabling us to maintain our industry-leading Scope 1 and Scope 2 CO2 emissions in the medium-term."
Kistos shares were trading 2.0% higher at 258.00 pence each in London on Tuesday morning.
By Holly Beveridge, Alliance News reporter
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