KUALA LUMPUR (Feb 4): Hibiscus Petroleum Bhd's associate company in Australia, 3D Oil Ltd (TDO), has been awarded a VIC/P79 exploration permit in Australia.

In a filing with the local bourse, Hibiscus said the permit in the offshore Otway Basin was awarded by the National Offshore Petroleum Titles Administrator.

The firm said the 2,576 square km permit is located next to the largest gas fields in the offshore Otway Basin, Thylacine and Geographe, and contains the highly prospective Vanguard Prospect.

"An exploration well commitment during the first three years of the work programme demonstrates the company's high confidence in the potential of Vanguard and aligns with planned drilling activities in the basin," it added.

Vanguard has a best estimate prospective resource of 161 billion cubic feet (Bcf) (in-permit), supported in part by Direct Hydrocarbon Indicators (DHIs), including multiple flatspots and amplitude anomalies.

The basin has witnessed a 100% success rate for almost two decades due to the identification of DHIs.

The permit adds to an already strong portfolio of leads and prospects in the area that will likely further grow after the processing and interpretation the Sequoia 3D Marine Seismic Survey (MSS), recently acquired in nearby T/49P (owned 20% TDO) by operator ConocoPhillips Australia (COPA), it added.

Hibiscus said the work programme for VIC/P79 was designed to rapidly exploit an existing opportunity in the permit via one exploration well at Vanguard Prospect in permit year three, after the reprocessing, merging and interpretation of 630 square km of existing 3D seismic data.

"Reprocessed data will also support geological and geophysical studies of additional leads already identified. The Secondary Term will focus on adding additional value by exploring the large, underexplored region to the west. This will be achieved by acquiring and processing 1000 square km of 3D seismic data in Permit Year 5 with the intention of searching for additional closures," it noted.

Hibiscus' unit Oceania Hibiscus Sdn Bhd holds an 11.7% equity interest in TDO.

Shares in Hibiscus rose by as much as 7% to RM1.07 in active Friday afternoon trade. At 2.45pm, the stock pared some of its gains to RM1.05, still up 5% or five sen.

There were 46.23 million shares exchanging hands so far, more than two times compared with its 200-day average trading shares of 17.75 million shares.