Kistos Reports Strong Q1 Production Surge and Advances Oman Acquisition with $300M Bond Plan

One nuance: part of that $204 million sits in escrow for acquisitions and credit or decommissioning arrangements, so not all of it is immediately available. That is standard for deals of this type, but worth remembering when you think about liquidity headroom.

$300 million senior secured bond: refinancing the Norwegian stack

Kistos has mandated ABG Sundal Collier and Fearnley Securities to arrange investor meetings for a potential USD 300 million 4-year senior secured bond. The net proceeds would primarily refinance outstanding bonds in Kistos Energy (Norway) AS of approximately USD 290 million (plus accrued and unpaid interest), with any remainder for general corporate purposes.

Why this matters: a clean refinancing de-risks the balance sheet and aligns maturities with the enlarged group post-Oman. The bond is “senior secured” – it sits high in the repayment queue and is backed by collateral – which can help reduce the coupon versus unsecured debt. Pricing, covenants and security package are not disclosed yet, so the eventual cost of capital remains a swing factor.

Oman acquisition: approvals in hand for Blocks 3&4, Block 9 to follow

The acquisition of interests in Blocks 3&4 and Block 9 remains on track. Completion of Blocks 3&4 is set to come first due to the different EPSA framework, and all necessary approvals for the transfer of Blocks 3&4 have been obtained, including Ministerial Approval. Completion is expected following issuance of the Royal Decree.

Once complete, the acquisition is expected to add 25.6 mmboe of 2P reserves net to Kistos, valued at approximately $5.80 per boe of 2P reserves (operator estimates). That is a clear step-up in scale, with management saying the move will double the Company’s current production and 2P reserves. Both Blocks 3&4 and Block 9 have continued to produce and export without interruption, with product exported directly via the Arabian Sea – importantly, this bypasses traffic in the Strait of Hormuz.

Jargon watch: 2P reserves are proved plus probable volumes – the industry’s “best estimate” of recoverable barrels. EPSA refers to the contractual regime that governs how assets are held and operated in Oman.

What looks positive

• Operational momentum: Pro forma Q1 output of 21.8 kboepd and steady FY26 guidance signal reliable delivery.
• Balance sheet visibility: $204 million of cash and near-cash and adjusted net debt of $78 million provide flexibility during the Oman closing phase.
• Refinancing plan: A proposed USD 300 million secured bond to refinance roughly USD 290 million of Norwegian bonds simplifies the debt stack.
• Oman progressing: Ministerial Approval secured for Blocks 3&4 with completion pending a Royal Decree, plus uninterrupted production and exports from both asset areas.
• Strategic diversification: Entry into the Middle East adds scale and geographic diversity, with exports routed via the Arabian Sea.

What to watch and potential risks

• Completion mechanics: Final completion of Blocks 3&4 requires the Royal Decree, and Block 9 will complete later – timings beyond that are not disclosed.
• Bond terms: Coupon, covenants and security details are not disclosed. The cost of debt will influence free cash generation.
• Cash composition: The $204 million includes escrowed amounts and a tax rebate due in December 2026, so immediate liquidity is lower than the headline suggests.
• Execution after close: Integrating the Oman assets and sustaining the 19 – 21 kboepd guidance through 2026 will be key proof points.

Key numbers at a glance

Q1 2026 production (pro forma)	21.8 kboepd
Q1 2026 production (non-pro forma)	13 kboepd
Q1 2025 production (comparable period)	7 kboepd
FY26 production guidance (pro forma)	19 – 21 kboepd
Cash and near-cash (31 March 2026)	$204 million
Adjusted net debt	$78 million
Outstanding bond debt (face value)	$282 million
Q1 2026 EBITDA (pro forma)	~$75 million
Contemplated bond issuance	USD 300 million, 4-year, senior secured
Expected 2P reserves added from Oman	25.6 mmboe at ~$5.80/boe

My take: credible growth story, pending final signatures

This is a tidy update from Kistos. Pro forma numbers show the “new Kistos” with Oman included – stronger volumes and solid EBITDA – while the as-reported production trend is already moving the right way thanks to Norway. The prospective bond refinancing is sensible housekeeping that, once priced, will remove a large maturity overhang and clarify interest costs.

The Oman deal is the fulcrum. With Ministerial Approval in the bag for Blocks 3&4 and only the Royal Decree to go, completion feels close, though exact timing is not disclosed. Block 9 follows later due to a different framework. Until both are closed, the pro forma picture remains an “as if”, so investors should keep an eye on the completion announcements and the financial impact Kistos has promised to provide at that point.

Net-net, I view the statement positively: operationally robust, financing pragmatic, and a strategically attractive step into Oman at an implied $5.80 per barrel of 2P reserves. The two swing variables now are the bond pricing and the final step for Blocks 3&4 – nail those, and the investment case simplifies nicely.

Upcoming catalysts to track

• Issuance terms for the USD 300 million bond – coupon and covenants.
• Royal Decree for completion of Blocks 3&4, and subsequent completion of Block 9.
• Post-completion disclosure on mechanics and financial impact.
• Annual Report and Accounts publication, as signposted.