Revisit and look at the Mime RNS15 Apr 2024 12:41
Hello all, does any have any thoughts on conducting a review of the Mime merger and its affects positive / negative to Kistos.
With PoO looking to be up in the short to Mid term.
Coupled with Norway being a political and SAFE (excluding russian sabotage) location but tax heavy location and the time risk in meeting real start up dates.
19 Apr 2023 07:00
RNS Number : 6690W, Kistos Holdings PLC. 19 April 2023
In particular the 6milion warrants at 365p:
"The consideration for the transaction is US$1 plus the issue of up to 6 million warrants exercisable into new Kistos ordinary shares at a price of 385p each, which represents a premium of 31.4% based on the last trading date prior to this announcement of 293 pence on 18 April 2023"
The actual costs to KISTOS
"US$120MM of Super Senior bonds, which will attract interest of 9.75% per annum, 4.50% of which is payable in cash and 5.25% of which is payable-in-kind in the form of additional Super Senior bonds. The maturity date of the Super Senior bonds is 17 September 2026.
o US$105MM of so-called "MIME02" bonds, which will attract an interest rate of 10.25% payable-in-kind. The maturity date of the MIME02 bonds is 10 November 2027.
· The Mime debt being retained by Kistos or retired by Mime, less Mime's cash balances at 31 March 2023 and less the tax refund due in December 2023, equates to approximately US$111MM"
*NOTE SEE ALSO addtional warrants below on production related warrents
The reduction in payment to Mime ( no production , 500,000 Bbl, before the expected Jotan FPSO of August 2024).
" A contingent payment of US$45MM will be made to the MIME02 bondholders in the event 500,000 bbl (gross) have been offloaded and sold from the Jotun FPSO by 31 December 2024. This will decline to $30MM from 1 January 2025 to 28th February 2025, to US$15MM from 1 March 2025 to 31 May 2025, and to zero thereafter.
· If 500,000 bbl (gross) has not been offloaded and sold from the Jotun FPSO by 31 May 2025, the holders of Mime's Nordic Bonds will be allocated up to 2.4 million warrants exercisable into Kistos ordinary shares at a price of 385p each. The warrants can be exercised between 30 June 2025 and 18 April 2028. *Simultaneously, up to 1.9 million of the 5.5 million warrants issued as consideration for the Mime shares will be cancelled"
Any comments?
Baring in mind Mime / Kistos has 10% of expected production estimated once started up 15,000 boe/d
"Mime's share of production from Balder and Ringhorne is expected to be over 2,000 boe/d in 2023. This will increase significantly once the Balder X project is onstream, with production for the enlarged Group expected to be over 15,000 boe/d in 2025 once the Jotun FPSO is onstream"
Sft Note: ref RNS for full details
https://www.lse.co.uk/rns/KIST/agreement-to-acquire-mime-petroleum-as-c13cei2hsof4xtr.html
Note Last up date on Jotun
https://www.offshore-energy.biz/fpso-nearing-completion-but-changes-made-to-north-sea-oil-p
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