Kistos Holdings (AIM:KIST) has received Royal Decree from the Sultanate of Oman confirming legal ownership of Blocks 3 & 4 onshore Oman has now passed to the company.
The independent energy group is acquiring the blocks, along with Block 9, from Mitsui E&P Middle East for total consideration of $148 million, with an effective date of 1 January 2025.
Formal completion of the sale and purchase agreement will follow shortly, finalising accounting adjustments for the period since the original agreement was signed.
Block 9 completion continues on a separate timeline, reflecting its different exploration and production sharing agreement (EPSA) framework. The combined acquisition adds 25.6 million barrels of oil equivalent (mmboe) of 2P reserves and lifts 2025 production by roughly 9,000 to 10,000 barrels of oil equivalent per day (boepd), mostly liquids, at an acquisition value of approximately $5.80 per barrel of oil equivalent.
Kistos expects the deal to be immediately cash-generative.
"Royal Decree on Blocks 3 & 4 marks Kistos' official entry into the MENA region, with the overall transaction with Mitsui in Oman doubling the Company's current production and 2P reserves, providing geographical diversification to our portfolio and a platform for further growth," said Andrew Austin, Executive Chairman of Kistos.
News Intelligence what this means for the company
Kistos has received Royal Decree from Oman confirming legal ownership of Blocks 3 & 4, clearing the final regulatory hurdle for its $148 million acquisition from Mitsui. The deal adds 25.6 mmboe of 2P reserves and lifts 2025 production by roughly 9,000–10,000 boepd—doubling current production and reserves—at $5.80 per barrel of oil equivalent, with the company expecting immediate cash generation and formal completion to follow shortly.
The Oman entry marks Kistos' first material foray into the MENA region and materially diversifies its portfolio beyond the North Sea and Eastern Mediterranean. The acquisition is immediately accretive to production and reserves at a disciplined valuation, though execution risk remains on Block 9 completion and integration of a new geographic region.
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