Kistos to buy Tulip Oil Netherlands for €220m

Energy investor Kistos said it was buying Tulip Oil Netherlands for €220m.

Tulip Oil Netherlands owns an operating interest in the Q10-A offshore gas field and interests in other fields in the Dutch North Sea, Kistos said the purchase would be a combination of cash, shares and assumption of an existing bond instrument issued by Tulip along with the issue of a new debt instrument.

Kistos will also issue warrants over €5m of ordinary shares at a premium of 30% to the price of any equity placing to Tulip and a contingent consideration of up to €163m will be payable on certain development milestones.

The group expects to carry out an equity placing with existing and new investors in connection with the acquisition and stated it was working with debt advisors in Norway to explore options for its new debt instrument.

As of 0850 GMT, Kistos shares were flat at 165.60p.