Kistos Holdings (AIM:KIST) has completed its acquisition of Blocks 3 & 4 from Mitsui E&P Middle East, formally transferring legal ownership after Oman granted the required Royal Decree earlier this month.
The independent energy company, which targets value-accretive M&A alongside its existing portfolio, first agreed the deal on 9 December 2025 as part of a combined package with Block 9, priced on a portfolio basis and subject to standard completion adjustments from an effective date of 1 January 2025.
Block 9 remains on a separate completion timeline due to its distinct exploration and production sharing agreement (EPSA) structure, with closing still expected in the second half of the year.
Together, the two acquisitions add 25.6 million barrels of oil equivalent (mmboe) of 2P reserves at roughly $5.80 per barrel of oil equivalent, with net production guided at 9,000 to 10,000 barrels of oil equivalent per day at the time of the original announcement.
Kistos said the combined assets generated unaudited EBITDA of approximately $51 million over the six months to 30 June, based on draft figures from Mitsui and calculated as if both deals had completed on 1 January.
"Today marks a significant milestone for Kistos as we formally establish our presence in the Middle East," said Andrew Austin, Executive Chairman, adding that the company is now focused on "the timely completion of Block 9, which will further strengthen our position in the region."
News Intelligence what this means for the company
Kistos has closed the first tranche of its Oman entry, formally acquiring Blocks 3 & 4 from Mitsui after Oman's Royal Decree cleared in September. This unlocks USD 280 million of bond proceeds from escrow, which the company had raised via a USD 300 million senior secured bond at 9.875% coupon to fund the deal. Block 9 remains on track for H2 2026 close, which would trigger an additional USD 20 million escrow release—together the two blocks add 25.6 mmboe of 2P reserves at $5.80/boe and generated ~$51m EBITDA in H1 2026 on a pro-forma basis.
The completion removes a key execution risk and frees up material debt financing, but Kistos remains a small-cap upstream operator with concentrated geographic exposure (now split between North Sea, Eastern Mediterranean, and Middle East) and full commodity price sensitivity. Block 9's separate timeline and distinct EPSA structure introduce further completion risk in H2 2026.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
