(Alliance News) - Kistos Holdings PLC shares jumped on Wednesday, after it said it will buy Oslo-based Mime Petroleum AS for entry into the Norwegian Continental Shelf.
Shares in Kistos were up 12.6% at 330.00 pence each in London on Wednesday around midday.
Mime Petroleum AS will be purchased from Mime Petroleum Sarl. Its assets include a 10% stake in the Balder join venture, and a 7.4% stake in the Ringhorne East unit.
The London-based investor said it will issue 6 million warrants for its shares at 385 pence each, at a premium of 31%, for the Mime deal.
Kistos said the acquisition will add 24 million barrels of oil equivalent in 2P reserves at Balder and Rhinghorne, and 30 million boe of 2C resources. This will bring Kistos's total reserves plus resources to around 80 boe, the company said.
Kistos added that following completion of the acquisition, group production will be around 8,500 to 10,500 boe per day. Production is expected to rise to 15,000 boed once the Jotun floating production storage and offloading ship is in use in 2025.
Executive Chair Andrew Austin said: "I expect Mime to be a platform for growth on the Norwegian Continental Shelf and I believe Mime's management team - whose strategy and goals are aligned with ours - can help us achieve that."
By Sabrina Penty; Alliance News reporter
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Kistos Holdings (KIST)