Hibiscus to buy 50% interest in Anasuria Cluster for US$52.5m

by **Cals** Fri 07 Aug 2015, 23:54

Hibiscus to buy 50% interest in Anasuria Cluster for US$52.5m

KUALA LUMPUR: Hibiscus Petroleum Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) is acquiring a 50% stake in Shell UK Ltd, Shell EP Offshore Ventures Ltd, and Esso Exploration and Production UK Ltd in the Anasuria Cluster of oil and gas fields for US$52.5 million (RM204.2 million).
Together with Ping Petroleum Ltd, who is acquiring the remaining 50% interest, it has jointly entered into conditional sale and purchase agreements (SPAs) for the said purchase, effective Jan 1, 2015.
According to a joint statement yesterday, the Anasuria Cluster is located 175km east of Aberdeen in the UK Central North Sea, and comprises a 100% interest in three producing fields, namely Teal, Teal South and Guillemot A, and a 38.65% stake in Cook, together with the related field facilities. The assets have a proven and producing resource base which provides a platform for further development.
The acquisition also involves the Anasuria floating production, storage and offloading unit, and related equipment, with potential for future tie-ins. It is subject to regulatory approvals and third-party consent, including those of the UK government and Hibiscus’ shareholders.
Hibiscus managing director Ken Pereira (pic) said the buy will complete the company’s strategy of acquiring a balanced portfolio of assets within five years of its listing.
“The Anasuria Cluster has development potential for a company of the size of Hibiscus and provides us with an excellent foundation upon which we can build a significant North Sea presence,” he added.
Hibiscus’ filing with Bursa Malaysia showed it intends to fund the initial consideration of US$30 million through a loan facility and internally generated funds from the Anasuria Cluster from Jan 1. The deferred consideration will be funded through internally generated funds from the Anasuria Cluster, but the breakdown will only be fixed later.
The proposed buy will be undertaken by its indirect wholly-owned unit, Anasuria Hibiscus UK Ltd, which will operate the cluster.
This will provide Anasuria Hibiscus “a level of financial control and decision-making in the operational management and timing of the conduct of the work activities” within the cluster, it said.
The acquisition is expected to be completed by the first quarter of 2016, and is expected to contribute positively to the earnings of the Hibiscus group for the financial year ending June 30, 2016.
Trading of Hibiscus (fundamental: 1.65; valuation: 0.3) shares was suspended yesterday, pending the release of this announcement. It last closed at 87 sen, with a market capitalisation of RM823 million. The stock resumes trading today.

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This article first appeared in digitaledge Daily, on August 7, 2015.