Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on October 10, 2018

KUALA LUMPUR: Hibiscus Petroleum Bhd is acquiring a 50% interest in the production licence of two oil blocks in the UK Central North Sea for US$37.5 million (RM156 million).

Block 15/13a and Block 15/13b, under the production licence P198, are situated 250km north-east of Aberdeen and 19km north-east of the Piper Field in the UK Central North Sea, in 140m water depth. In a filing with Bursa Malaysia yesterday, Hibiscus said its indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd had entered into a conditional sale and purchase agreement with Caldera Petroleum (UK) Ltd for the proposed stake buy. Thereafter, Anasuria Hibiscus will assume the role of project manager or operator of the two blocks under a proposed joint operating agreement to be entered into between the two companies.

In a separate statement, Hibiscus said Block 15/13a consists of a significant oil bearing discovered field, while Block 15/13b consists of a smaller discovered field.

Hibiscus said based on an independent report by AGR TRACS International Ltd as of September 2018, the 2C oil resources of the blocks net to Anasuria Hibiscus (50% interest) were 30 million barrels of oil.

“Once a development plan is approved and successfully implemented, up to 30 million barrels of oil of 2C may potentially be converted into proved and probable reserves, which are expected to be added to the group’s portfolio, contributing to the group’s 2021 mission of 100 million barrels of oil. There may be near field opportunities that could be monetised through an area-wide development,” it added. Hibiscus expects to fund the purchase consideration through internal funds. Barring any unforeseen circumstances, it expects the proposed acquisition to be completed by mid-October.

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