Kistos reports sharp increase in production

(Sharecast News) - Kistos reported a sharp increase in production in the first quarter of 2026 on Wednesday, and said it remains on track to meet full-year guidance, while progressing its expansion into the Middle East. Pro forma production averaged 21.8 thousand barrels of oil equivalent per day in the three months ended 31 March, up from seven thousand daily barrels a year earlier excluding Oman.

The AIM-traded company reiterated its full-year pro forma production guidance of 19 to 21 thousand equivalent daily barrels.

Kistos generated pro forma EBITDA of around $75m in the quarter and reported cash, including near-cash equivalents, of $204m at the period end.

Adjusted net debt stood at $78m, reflecting cash net of outstanding bond debt with a face value of $282m.

The group also said it has mandated ABG Sundal Collier and Fearnley Securities to arrange fixed income investor meetings from 22 April in connection with a potential $300m four-year senior secured bond, primarily aimed at refinancing existing Norwegian bonds.

Kistos said it continued to make progress on its acquisition of interests in Blocks 3 and 4 and Block 9 in Oman, with completion of Blocks 3 and 4 expected first following ministerial approval and the anticipated issuance of a Royal Decree.

The assets were expected to add 25.6 million barrels of oil equivalent of 2P reserves net to the company, valued at around $5.80 per barrel.

"Kistos' entry into the Middle East is set to double the company's current production and 2P reserves, adding immediate scale and geographic diversity," said executive chairman Andrew Austin.

"The oil and gas produced from these assets is exported directly via the Arabian Sea, bypassing traffic in the Strait of Hormuz."

He added that operations elsewhere remained in line with expectations, supported by strong production from Norway following last year's delivery of the Balder Future project.

Austin said the company remained "well capitalised with readily available cash and funding lines post the completion of the Oman acquisitions", adding that provided flexibility to pursue further merger and acquisition opportunities across the Middle East, North Africa and Europe.

At 1300 BST, shares in Kistos Holdings were up 12.98% at 299.4p.

Reporting by Josh White for Sharecast.com.

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