Acquisition - Block 9 and Block 3 & 4, Oman

Immediately cash-generative acquisition represents an entry point for Kistos in MENA with scope for further expansion in the region

Kistos (LSE: KIST), an independent energy company focused on generating value across the upstream and midstream markets, is pleased to announce that it has entered into a binding agreement to acquire a 5% working interest in Block 9 and a 20% working interest in Blocks 3 & 4 from Mitsui E&P Middle East B.V., both located onshore in the Sultanate of Oman (the "Acquisition").

Acquisition highlights:

• Consideration of $148 million, with an effective date of 1 January 2025 which is subject to customary closing adjustments, payable on completion and will be funded with existing cash in Kistos
• Expected to add 25.6 mmboe (operators estimates) of 2P reserves net to Kistos (as at 1 January 2025)
• Additional estimated production of approximately 9,000-10,000 boepd net to Kistos in 2025, made up of approximately 91% liquids with the remainder gas
• The Acquisition is expected to be immediately cash-generative
• The Acquisition equates to a valuation of approximately $5.80/boe of 2P reserves

Kistos' entry into the Middle East adds geographical and onshore production diversification to the Company's existing portfolio. Representing an evolution in the Company's M&A strategy, the Acquisition aligns with the Board's core ambition of pursuing assets that have strong near-term production with significant development and exploration upside.

Block 9, operated by Occidental Petroleum, covers two producing areas. Blocks 3 & 4, operated by CCED, comprise seven producing fields and cover approximately 29,000 km² in eastern Oman.

Both Block 9 and Blocks 3 & 4 are governed by Exploration and Production Sharing Agreements (each one being an "EPSA"). The Omani EPSA is a well-developed and accepted framework that includes the concession area and term, payment mechanisms, and the conditions under which exploration, appraisal, commercial discovery, and extraction are to take place.

Completion of the Acquisition is subject to customary governmental and regulatory approvals and partner consents. Further announcements will be provided in due course, upon completion of the Acquisition, including any information on completion mechanics and the financial impact of the transaction on the Company.

Andrew Austin, Executive Chairman, commented:

"This acquisition marks a significant milestone for Kistos as we expand our footprint into a new and strategically important region, acquiring interests which align with our strategy of acquiring high-quality value-accretive assets, in both the near and long term.

Our entry into the MENA region represents an important step forward in our mission to build a resilient, future-facing energy company. It not only complements our existing portfolio in the North Sea but also provides a platform for long-term growth and enhanced cash flow. Effective 1 January 2025, this acquisition will increase our reserves to 50 mmboe and is expected to deliver a material uplift in Kistos' production in 2026 to approximately 20,000 boepd.

While we continue to consider the North Sea for further acquisitions, we view this foundational step into the MENA region as a way to diversify our portfolio, allowing us to broaden the opportunities we look at, potentially unlocking future synergies through further expansion in the region.

On behalf of the Board, I would like to thank our shareholders for their continued support and look forward to sharing further updates as we continue to grow and evolve."

Dr Richard Benmore, Non-Executive Director of Kistos with a Bachelors, Masters and PhD in Geosciences and who has been involved in the energy industry for more than 40 years, has read and approved the disclosure in this announcement.

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