KUALA LUMPUR (June 23): Hibiscus Petroleum Bhd said its jointly controlled entity Lime Petroleum Norway AS (Lime Norway) found no traces of hydrocarbon accumulation in its wildcat exploration in the Zumba prospect in PL591, which it participated in, in late May.

“We have been informed by Lime Norway that the operator, Tullow Oil Norge AS (Tullow Oil), is currently completing drilling of the exploration well 6507/11-11 on the Zumba prospect.

“The target upper jurassic reservoir sandstones were not encountered and therefore the anticipated hydrocarbon accumulations were not found,” said Hibiscus in a filing with Bursa Malaysia today.

The well, it said, is approximately 14km south-east of the Heidrun Field in water depth of 272 metres.

"Drilling was stopped at 2,875 metres below sea level in the Middle Jurassic Fangst Group. The estimated cost of Hibiscus’ net interest in this well is US$1.1 million,” it added.

Hibiscus (fundamental: 1.65; valuation: 0.3) had previously said in May that Tullow Oil Norge AS1 (Tullow) is the operator of the license, and that Tullow was targeting hydrocarbon potential in sandstones of the Upper Jurassic Rogn formation.

Partners in the license are Tullow Oil with 60% interest, North Energy ASA (North Energy) with 15%, and Lime Norway with the remaining 25%.

Meanwhile, Hibiscus said today that the Haribo prospect at PL616 in the North Sea was spudded on June 21.

“The well is designated as 2/11-11 and drilling is expected to take 45 days to reach a depth of 3,350 metres. The Haribo prospect has reworked chalk on the west flank of the Valhall-Hod ridge as reservoir target.

“The exploration potential is estimated by Edison Norge AS (operator) at some 150 million barrels of oil (unrisked) with the geological chance of success at 25%,” it said.

Hibiscus added that the license further contains two small oil/gas discoveries in the northern part and broadband 3D seismic has been reprocessed to evaluate that part of the license.

The parties in the PL616 license are: Edison Norge AS (25%), Noreco Norway AS (20%), Concedo ASA (20%), North Energy (15%), Skagen44 AS (5%) and Lime Norway (15%) — the last is pending regulatory approval following the execution of an agreement with Skagen44 for Lime Norway acquire a 10% interest in April 2015.

Hibiscus added that apart from PL591, its 2015 drilling plans for its licenses includes PL616 in Norway (operated by Edison Norge AS) estimated spud time in June; VIC/P57 in Australia (operated by Carnarvon Hibiscus Pty Ltd) estimated spud time in July or August 2015; PL338C in Bredford Dolphin (operated by Lundin Norway AS) estimated spud time in Oct 2015; PL708 and PL544 in Norway (operated by Lundin Norway AS), estimated spud time in November 2015 and late 2015, respectively.

Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc, which is jointly-controlled (indirectly) by Rex International Holding Limited (56.4%), Hibiscus (35%), and Schroder & Co Banque SA (8.6%).

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