KUALA LUMPUR (Oct 3): Hibiscus Petroleum Bhd is participating in an oil exploration project previously awarded to its 11.7%-owned Australian associate 3D Oil Ltd in the offshore Gippsland Basin, Australia.

In a filing with Bursa Malaysia today, Hibiscus said its indirect wholly-owned subsidiary Carnarvon Hibiscus Pty Ltd (CHPL) has exercised an option to take up a 50% interest in the exploration permit there.

The 1,006 square km exploration permit, dubbed VIC/P74, was awarded to Australian Stock Exchange-listed 3D Oil in July by the National Offshore Petroleum Titles Administrator.

The permit is located on the southern side of the Gippsland Basin, adjacent to the world-class Kingfish oilfield — the largest ever discovered in Australia and which to date has produced over one billion barrels of oil.

In conjunction with the above, Hibiscus said CHPL will enter into a conditional farm-in agreement with 3D Oil at a later date, of which an agreed term is that 3D Oil shall remain as the operator of the permit through the primary first three years of the prospect generation phase (First Phase).

“This work programme consists primarily of purchasing reprocessed 3D seismic data to progress geological and geophysical studies in order to fine-tune resource assessments and enable due prospect ranking,” it said.

“It has been agreed between the parties that if it is required that a well or wells be drilled after the First Phase, CHPL shall be the operator of the Permit but 3D Oil shall continue to be the operator for geological & geophysical operations, but however, if there is a farm-in for a substantial interest in the permit that will require drilling a well or wells by the farmee, the farmee will become the operator instead for all operations.

“Upon completion of CHPL’s acquisition of the Interest, CHPL and 3D Oil will enter into a joint operating agreement,” it added.

Hibiscus’ share price slipped 0.5 sen or 0.5% to 95 sen today, for a market capitalisation of RM1.5 billion.