UK-based independent energy company Kistos has completed the acquisition of Mime Petroleum (Mime) to gain access to Norway’s offshore oil fields.
Kistos acquired all of the outstanding shares of Mime for $111m (£89.3m), pursuant to an acquisition agreement signed between the companies last month.
As part of the deal, Mime will repay $75m of its debt, while the enlarged company is expected to assume the remaining $225m.
Kistos will pay up to $45m to Mime’s bondholders in 2025, subject to the achievement of certain operational milestones.
The acquisition provides a 10% interest in the Balder joint venture (JV) comprising the Balder and Ringhorne fields located on the Norwegian Continental Shelf (NCS) in the North Sea, and a 7.4% interest in the Ringhorne East project.
The Balder and Ringhorne fields are operated by Vår Energi, a Norwegian oil and gas company, which owns a 90% interest in the Balder JV. Vår Energi is planning to extend the production lifespan of the Balder and Ringhorne fields to 2045.
The acquisition, which marks Kistos’ entry into the NCS, added 2P reserves of 24 million barrels of oil equivalent (mboe) and 2C resources of 30mboe. This increased the company’s total reserves and resources to around 80mboe.
Additional reserves include 24mboe net to Mime at the Balder and Ringhorne oil fields.
In addition, Kistos expects the acquisition to bring more than 2,000 barrels of oil equivalent per day (boed) of production immediately.
The company is eyeing an increase in total output to more than 15,000boed in 2025 through the transaction, once the Jotun floating production storage and offloading unit completes upgrades and re-joins production for the Balder and Ringhorne fields.
Kistos executive chairman Andrew Austin said: “Our entry into Norway signifies our commitment to securing sustainable growth opportunities across the North Sea Basin and positions us as an influential independent producer across three jurisdictions.
“Mime’s assets give us visibility on a rising production profile over the next few years whilst enabling us to maintain our industry-leading scope 1 and scope 2 CO₂ emissions in the medium-term.
“The focus now will be on immediately integrating Mime into Kistos. We look forward to working with Mime’s experienced management team and leveraging their valuable knowledge of the assets and basin to achieve our shared objectives for the Group, while maintaining the responsible energy production at the heart of our operations.”