Kistos Holdings (AIM:KIST) has signed a sales and purchase agreement with Vår Energi to acquire a 10% working interest in production licences PL 169E, PL 956 and PL 956B on the Norwegian Continental Shelf.
The London-listed independent energy company will pay upfront consideration of $12.9 million, with the deal carrying an effective date of 1 January.
The acquisition brings Kistos a uniform working interest across the Balder-Ringhorne fields, the Ringhorne East Unit, and the part of the Ringhorne Nord field sitting in PL 956 and PL 956B, matching its existing 10% stake in PL 027.
Kistos already holds a 10% non-operated interest in the Balder Next development, where operator Vår Energi took a final investment decision in June on seven new wells tied back to the Jotun FPSO, targeting first production in the fourth quarter of 2027.
The new licences add 4.3 million barrels of oil equivalent net to Kistos across combined 2P reserves and 2C resources, alongside a small production contribution, with the 2C volumes expected on stream in 2029.
Kistos said the deal aligns its interests with Vår Energi across the Balder Area, enabling more efficient field development and lower operating costs to support maximum resource recovery.
"These new licences increase our presence and exposure across the world-class Balder Area, while also extending our production profile at a low operating and development cost," said Andrew Austin, Kistos's executive chairman, adding that the partnership's medium-term focus will turn to bringing new production on stream by 2029 and maximising the 2C-to-2P development opportunities.
Completion remains subject to customary regulatory approval from the Norwegian Ministry of Energy.
