Hibiscus strikes oil from second well in Oman

by **Cals** Wed 05 Feb 2014, 08:32

Posted on 5 February 2014 - 05:38am

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PETALING JAYA (Feb 5, 2014): Hibiscus Petroleum Bhd's jointly-controlled entity with Lime Petroleum Plc, Masirah Oil Limited, has struck oil in its second exploration well in Block 50 Oman.

Hibiscus said it discovered hydrocarbons with good oil sample extracted in several formations of the Cambrian formation in Oman.

Masirah, which began drilling an oil exploration well in Block 50 offshore Oman last November, successfully reached the well target depth in the Cambrian formation of over than 3,000 metres.

Hibiscus said the well will undergo data acquisition before setting the completion for testing.

"The discovery of hydrocarbons in second exploration well is a significant step towards the deepening of our knowledge and understanding of the offshore geology in the east of Oman, where no discovery has been made beforem," said Hans Lidgren, chairman of Masirah said in statement yesterday.

"The results from this well are vital for the future development of this block. This discovery confirms the high quality and value of the Oman asset," he added.

Lidgren said Masirah looks forward to a continued fruitful cooperation with the Omani Oil and Gas Ministry for many more years to come.

Lime Petroleum is a jointly-owned company between Rex International, Hibiscus Petroleum and Schroders.

Lime Petroleum, through Masirah Oil, has a 64% participating interest in the Block 50, while Petroci Holding has the remaining 36% participating interest.

The oil discovery saw Hibiscus Petroluem shares and warrants rise among the most actively traded yesterday. At the opening bell, Hibiscus rose 23 sen, or about 11%, to RM2.33 while its warrants rose 11 sen or 7.2% at RM1.64. However, the stock fell back to close at RM2.18, up 8 sen or 3.8%. Its warrants jumped 15 sen, or 9.8%, to RM1.68.

Hibiscus Petroleum was the first special-purpose acquisition company to list on Bursa Malaysia in July 2011. The group is focused on the exploration and development of oil and gas fields in the Middle East, Norway, South Asia, East Asia, and Oceania regions.