KUALA LUMPUR (April 2): Hibiscus Petroleum Bhd may spend roughly US$55 million (about RM212.54 million) on capital expenditure (capex) for its North Sabah Enhanced Oil Recovery Production Sharing Contract (PSC) over the next three years to increase Hibiscus' oil production.

Hibiscus managing director Dr Kenneth Pereira said at a media briefing here today this is the amount of money the group will need to raise via external funding.

"We may spend more than that, but our exposure is about there," Pereira said.

Hibiscus announced to Bursa Malaysia today its wholly-owned subsidiary SEA Hibiscus Sdn Bhd had completed the acquisition of a 50% participating interest in the North Sabah Enhanced Oil Recovery PSC for US$25 million from Shell.

Hibiscus said the acquisition will "significantly boost" Hibiscus' oil production. At the media briefing, Pereira said the North Sabah Enhanced Oil Recovery PSC will effectively more than double Hibiscus' total production to "just under 9,000 barrels per day."

At 12:30pm today, Hibiscus shares settled at 85 sen for a market capitalisation of RM1.34 billion. The stock saw about 27 million shares transacted.