KUALA LUMPUR (Oct 7): Hibiscus Petroleum Bhd, through its indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd (AHUK), is acquiring more oil and gas rights from United Oil & Gas PLC and Swift Exploration Ltd for up to US$5 million cash.
The latest two blocks are located offshore in the UK sector of the North Sea, 250km northeast of Aberdeen.
In a bourse filing today, Hibiscus said it had on July 17 signed a sale and purchase agreement (SPA) to acquire License P2366, comprising North Sea Blocks 15/18d and 15/19b, from United and Swift. The two companies were awarded License P2366 as part of the UK’s Oil and Gas Authority’s 30th Licencing Round in August 2018, and they hold 95% and 5% participating interest respectively.
"The blocks include the Crown Discovery, which consists of 2C contingent resources that range between 4 million and 8 million barrels of oil. The blocks are located 12km south-east of Marigold oil field, which together with the Sunflower field, was acquired by AHUK in October last year," it added.
AHUK will pay a non-refundable payment of US$100,000 to United and Swift and a further US$900,000 million upon completion of the SPA.
"Subject to further milestones being achieved post SPA completion, an additional sum of US$3 million will be paid within seven business days of the actual date of approval of the Marigold field development plan (FDP) by the relevant UK regulatory authority, which is expected to be received by the end of 2020," Hibiscus said.
Given its proximity to Marigold, the contemplated development of Crown is based on a single well subsea tieback to the Marigold field.
"The proposed acquisition of License P2366 is subject to the receipt of OGA’s approval for the assignment of the licence to AHUK and the appointment of AHUK as operator. If the conditions have not been fulfilled or waived by the parties by Dec 31, 2019, the proposed acquisition would be terminated according to the terms of the SPA," Hibiscus said.
Shares of Hibiscus finished half a sen lower at 94.5 sen today, with 5.42 million shares exchanging hands, valuing the group at RM1.5 billion.