KUALA LUMPUR (Dec 3): Hibiscus Petroleum Bhd expects the total number of offtakes of its crude oil for the financial year ending June 30, 2019 (FY19) to rise to approximately 10 or 11, compared with an average of four per year previously.

In a business update filed with Bursa Malaysia today, Hibiscus said this increase in the number of offtakes will help smoothen the average selling price per barrel of oil over FY19.

For FY19, it intends to deliver total oil production attributable to the group of about 2.7 to 3 million barrels of oil (mmbbls).

Hibiscus also said it is working towards achieving net production of 5,000 bbls per day at the Anasuria Cluster by the end of FY20.

Hibiscus said it will focus on managing costs amidst volatility in global oil prices and maintaining its operating expenditure per barrel of oil equivalent (boe) at a level below US$20 per boe.

“This compares with an average selling price of crude oil achieved by the company of US$65.69 per bbl for FY18 and US$76.36 per bbl for 1QFY19,” it said.

Hibiscus Petroleum also said its combined proven and probable oil reserves have increased to approximately 46 mmbbls, with the addition of North Sabah Enhanced Oil Recovery Production Sharing Contract and a recent upgrade of reserves at its Anasuria Cluster.

In the UK, Hibiscus Petroleum said the two fields in Central North Sea, which it acquired 50% participating interest in October this year, is progressing towards submission of field development plan to authorities for approval in about 18 months.

Hibiscus Petroleum said it is commencing engineering and technical studies costing about US$5 million for these two fields.

Hibiscus Petroleum’s share price gained eight sen or 8% to RM1.08 today, giving it a market capitalisation of RM1.72 billion.