Transaction marks entrance into the Norwegian Continental Shelf
Kistos, the low carbon intensity hydrocarbon producer pursuing a strategy to acquire assets with a role in energy transition, has announced the completion of the acquisition of all of the outstanding shares of Mime Petroleum.
Completion of the acquisition marks Kistos' entry into the Norwegian Continental Shelf and adds 24 MMboe of 2P reserves (operator estimate) plus 30 MMboe of 2C resources, increasing total Group reserves plus resources to approx. 80 MMboe. The acquisition will also add over 2,000 boe/d of production immediately and help to boost Group output to in excess of 15,000 boe/d in 2025 once the Jotun FPSO is on production..
The terms of the transaction are unchanged from the announcement made on 19 April 2023 and represent an adjusted consideration of US$111MM (excluding contingent amounts).
Highlights
- Through its wholly owned subsidiary Kistos plc, Kistos has acquired 100% of the issued and to be issued share capital of Mime from the Vendor.
- The consideration is US$1 plus the issue of up to 6 million warrants exercisable into new Kistos ordinary shares at a price of 385p each.
- Mime will repay US$75MM of its debt, and the enlarged Group will assume the remaining US$225MM. A payment to Mime's bondholders of up to US$45MM in 2025 is contingent on certain operational milestones being achieved.
- The Mime debt being retained by Kistos or retired by Mime, less Mime's cash balances at 31 March 2023 and less a tax refund due in December 2023, equates to approximately US$111MM.
- Based on operator estimates, 2P reserves at Balder and Ringhorne were 24 MMboe net to Mime at the end of 2022. In addition, Kistos estimates Mime has net 2C resources of 30 MMboe, largely comprised of additional upside in Balder and Ringhorne plus the 2021 King oil discovery. Following the acquisition of Mime, total Group resources are approximately 80 MMboe.
- Excluding contingent amounts payable, Kistos estimates that on a pro forma basis at 31 March 2023, the enlarged Group would have had net cash of €5MM, comprising cash of €293MM and outstanding Nordic Bonds of €288MM (€0.92 to US$1.00).
Andrew Austin, Executive Chairman of Kistos, said:
'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. 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.
'The focus now will be on immediately integrating Mime into Kistos. We look forward to working with Mime's experienced management team and leveraging their valuable knowledge of the assets and basin to achieve our shared objectives for the Group, while maintaining the responsible energy production at the heart of our operations.'
Source: Kistos
