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.