Hibiscus ups stake in Australian operations

Hibiscus Petroleum Bhd is raising its stakes in the Australian oil and gas exploration operations following a corporate exercise with its Australian partner, 3D Oil Ltd.

Jul 7th, 2014

Offshore staff

KUALA LUMPURHibiscus Petroleum Bhd is raising its stakes in the Australian oil and gas exploration operations following a corporate exercise with its Australian partner, 3D Oil Ltd.

The company has signed several agreements with 3D Oil to raise its effective stake in the VIC/L31 production license, which contains the West Seahorse discovered field. The agreements included the VIC/P57 exploration permit, which is believed to contain several exploration opportunities.

Currently, Hibiscus Petroleum's subsidiary,Carnarvon Hibiscus Pty Ltd has a 50.1% stake in both licenses in the Gippsland basin offshore Australia. 

Under the corporate exercise, Carnarvon Hibiscus' interest in the VIC/L31 production license (West Seahorse discovery) will be raised from 50.1% to 56.17%, for $1.94 million under a debt conversion exercise.

West Seahorse contains 6.5 MMboe and contingent resources of 1.5 MMboe.

It also has an option to raise its stake in the VIC/L31 production license (VIC/L31 option) from 56.17% to 100% for $14 million, based on a fair market value of 3D Oil's 49.9% stake in the West Seahorse field.

The corporate exercise would see Carnarvon Hibiscus' interest in the VIC/P57 exploration permit increased from 50.1% to 55.1%.

Hibiscus said Carnarvon Hibiscus' stake in theBritanniarig would be increased from 50.1% to 100%. The move to raise the stake in the rig and the 5% interest in the VIC/P57 exploration permit was $7.5 million.

07/07/2014

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