Kistos Holdings PLC (AIM:KIST) shares rose 11.3% to 295p after the group reported higher production and progress on its Oman acquisition.
The company said pro forma production averaged 21.8 thousand barrels of oil equivalent per day in the first quarter, up from 7 thousand a year earlier excluding Oman. Full-year guidance remains unchanged at 19-21 thousand barrels per day.
Kistos reported pro forma EBITDA of about $75 million for the quarter, with cash and near-cash of $204 million and adjusted net debt of $78 million.
The group also confirmed that its acquisition of interests in Blocks 3 and 4 and Block 9 in Oman remains on track. Completion of Blocks 3 and 4 is expected shortly following final approval, with Block 9 to follow.
The assets are expected to add 25.6 million barrels of oil equivalent of reserves and provide increased scale and geographic diversification.
Executive chair Andrew Austin said: "Kistos' entry into the Middle East is set to double the Company's current production and 2P reserves, adding immediate scale and geographic diversity."
He added that operations elsewhere performed in line with expectations, supported by strong output from Norway.
Kistos said it is exploring a potential $300 million bond issue to refinance existing debt.
Analysts at broker Panmure Liberum said the boost from Norway and the recent Oman acquisition were "shifting the company to the next level in terms of size".
The balance sheet was seen as being "in good shape" with adjusted net debt (which includes the Norway tax rebate) at end-March of $78 million.
The Oman deal "offers substantial future upside" beyond the initial assets, the analysts added.
"Investors will be cheered to hear that the Oman assets have been able to maintain production and exports during the ongoing Gulf conflict, and as such we do not see any threat to future operations even if there is a near-term escalation in hostilities between the US and Iran.
"The company continues to grow at pace with the increased diversification of revenues across the portfolio putting the company in a far stronger position with no over-reliance on any single asset.
"With no hedging currently in place, the company is also fully able to garner the upside from higher commodity prices across all of its assets."