Saturday, December, 14, 2019 06:13:48

Hibiscus Petroleum, an independent oil & gas company based in Malaysia, has reportedly announced that its subsidiary Anasuria Hibiscus UK (AHUK) has signed a conditional purchase and sale contract with Caldera Petroleum (UK) Ltd. to obtain a 50% participating interest two discovered offshore oil fields.

Reports cite, AHUK would be acquiring 50% interest in the Block 15/13b and Block 15/13a under the P198 Production License. Under the terms of the deal, AHUK would reportedly be making a $37.5 million worth of purchase consideration.

According to a press release by Hibiscus Petroleum Berhad, the acquisition would potentially be boosting Hibiscus Petroleum’s 2C oil resources by approximately 30 million barrels, making the company’s total 2C oil resources reach approximately 68.5 million barrels. The company’s current 2C oil reserves stand at around 38.5 million barrels while the 2P oil reserves stand at 46 million barrels.

The two blocks are reportedly situated offshore in the UK’s sector of the North Sea, around 250km off northeast Aberdeen. The Block 15/13a reportedly contains a large oil bearing discovered field. Moreover, the Block 15/13b which is situated towards the northeast of Block 15/13a contains a smaller discovered field.

According to an independent report by AGR TRACS International Ltd, the total contingent oil resources present in the two blocks are forecast to be worth over 60 million bbls. Under the agreement, AHUK would reportedly own approximately 30 million bbls of the total 60 million bbls.

The Managing Director of Hibiscus Petroleum Berhad, Dr. Kenneth Pereira reportedly stated that the company is extremely thrilled by the new acquisition as it is a crucial component of the company’s 2021 mission of securing over 100 million bbls of probable and proved reserves. Dr. Pereira further added that the blocks are in a region that is in proximity to existing infrastructure and other discoveries. The company looks forward to work with its new partner and the UK regulators.

Reportedly, the acquisition of the blocks is subject to a written consent from the UK Oil & Gas Authority.