Kistos PLC (AIM:KIST) said it has closed on the acquisition of a 20% stake from TotalEnergies SE (NYSE:TOT, EPA:TTE) in the Greater Laggan gas field.
The group also acquired various interests in other exploration licences, including 25% in the Benriach prospect.
The London-listed low carbon intensity gas producer said the effective date of the acquisition is January 1, 2022.
The £123mln deal was first announced at the beginning of this year, with the acquisition completion marking Kistos' entry into the UK North Sea.
The project will add approximately 6,000 barrels of oil equivalent a day (boe/d) to Kistos' production in 2022, as 2P reserves will increase by 6.2 MMboe, which will increase Kistos' production base to approximately 12,000 boe/d.d.
Located offshore to the west of Shetland, the Greater Laggan Area consists of the Laggan, Tormore, Edradour, and Glenlivet gas fields.
A 20% interest in the undeveloped Glendronach gas field, discovered in 2018, is also included in the acquisition.
Originally, a final investment decision on Glendronach was expected in July 2020, but was delayed to 2021 and is now expected later this year.
Kistos said Glendronach will be developed via a single production well with the net cost of the project estimated to be approximately £20mln, with Kistos' share of expenditure "expected to be subject to the super deduction" in the UK's Energy Profits Levy.
"We look forward to working with TotalEnergies and our partners within the GLA. The addition of the GLA interest to our portfolio is an important step towards expanding and diversifying our producing asset base in one of the largest gas hubs in the UK," said Andrew Austin, executive chair.
"In addition to the immediate significant increase in our daily production, these assets also offer investors significant upside potential from the Glendronach development project and the highly prospective Benriach exploration target."
Shares were trading 0.65% higher at 463.00p.