Business
Completion of Mime Petroleum Acquisition
Completion of Mime Petroleum Acquisition.
About this update from Kistos Holdings Plc
[{"type":"text","content":"\n\n \nTHIS 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.\n \n23 May 2023\n\n \nKistos Holdings plc\n \n(\"Kistos\" or \"the Company\" and, together with its subsidiaries, \"the Group\")\n \nCompletion of Mime Petroleum A.S. Acquisition\n \nTransaction marks entrance into the Norwegian Continental Shelf\n \nKistos (LSE: KIST), the low carbon intensity hydrocarbon producer pursuing a strategy to acquire assets with a role in energy transition, is pleased to announce the completion of the acquisition of all of the outstanding shares of Mime Petroleum A.S. (\"Mime\") from Mime Petroleum S.a.r.l. (the \"Vendor\").\n \nCompletion 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 approximately 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..\n \nThe 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).\n \nHighlights\n \n· 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.\n \n· 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.\n \n· 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.\n \n· 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 appro...