Hibiscus to generate revenue next year if Oman drill successful

Hibiscus to generate revenue next year if Oman drill successful
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 20 August 2013 17:57

KUALA LUMPUR (August 20): Malaysia's first special purpose acquisition company (SPAC) Hibiscus Petroleum Bhd is looking at generating revenue by 2015 from its Australian venture.
However, should its drill of its two oil wells in Oman bear fruit, the oil and gas (O&G) SPAC will register profit at the end of next year, said Hibiscus managing director Dr Kenneth Pereira.

A statement issued by Hibiscus yesterday said the company will begin drilling of its two wells in the Block 50 Oman Concession in the middle of October 2013..

The company has awarded a drilling rig contract to Aban 7 Pte Ltd, with the contract being effective for a minimum period of 50 working days.

The two selected wells, Masirah North North #1 and Masirah North East #1, have been internally estimated to have prospective resources of about 160 million barrels.

After Hibiscus' annual general meeting today, Pereira said the value of the oil in the ground from the two wells could fetch about US$6 a barrel.

Hibiscus has an effective interest of 22% in the Oman venture, by virtue of it acquring a 35% stake in Lime Petroleum Plc and the latter owning a 64% participating interest in the Oman Block 50 concession.

Hibiscus also has a 13% equity stake in Australian-listed 3D Oil Ltd. The former has previously signed a conditional farm-in agreement with 3D Oil for the acquisition of 50.1% farm-in interest in VIC/P57 concession area in Australia.

The concession area includes the proven West Seahorse oilfield and identified exploration prospects Sea Lion and Felix, according to Hibiscus.