Investment company Kistos has agreed to acquire all the outstanding shares of Norwegian oil company Mime Petroleum.

The deal marks Kistos’ foray into the Norwegian Continental Shelf.

Mime Petroleum owns a 7.4% holding in the Ringhorne East unit and a 10% interest in the Balder joint venture, both of which are located in the North Sea and are run by Var Energi.

Kistos expects the deal to add 24 million barrels of oil equivalent (mboe) of 2P reserves, and 30mboe of 2C resources to its portfolio.

 These would raise the company’s total reserves and resources offshore northwest Europe to around 80mboe.

Kistos will make a token consideration of $1 for the deal, along with up to six million warrants exercisable into new Kistos ordinary shares at 385 pence each.

It will also assume Mime Petroleum’s $225m debt as part of the agreement.

A potential $45m further payment to Mime’s bondholders is also included in the agreement, subject to several operational milestones being met.

In 2023, Kistos anticipates Mime’s capital expenditures to reach up to $130m.

 Kistos executive chairman Andrew Austin said: “After a period during which commodity price volatility and fiscal uncertainty has made it difficult to agree to deals in the UK and the Netherlands, I am very pleased to be able to announce Kistos’ expansion into Norway.

“Kistos has evaluated several transactions in the UK and Dutch sectors, but the imposition of punitive windfall taxes and a lack of fiscal certainty have meant that both countries remain difficult places to commit capital and ensure continuity of shareholder returns.”