HIBISCS

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OTHERS Update on SEA Hibiscus Sdn Bhd Exploration Drilling Campaign

HIBISCUS PETROLEUM BERHAD

Type Announcement
Subject OTHERS
Description
Update on SEA Hibiscus Sdn Bhd Exploration Drilling Campaign

Reference is made to a disclosure made on 22 November 2023 (and further updated on 20 February 2024) in respect of an exploration drilling campaign (“campaign”) conducted by our indirect wholly owned subsidiary SEA Hibiscus Sdn Bhd (“SEA-H”).  The campaign comprised a drilling program to drill 3 exploration wells, namely South Furious Ungu, South Furious Ungu ST and South Furious Merah to evaluate prospective Near Field exploration locations within the boundaries of the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (“2011 PSC”).

 

The campaign initially kicked off at the South Furious Ungu well location on 29 October 2023 and later moved to the South Furious Merah location on 19 January 2024 after drilling the South Furious Ungu ST well.   Whilst the drilling rig is still on location, it is expected to be released as soon as work is completed at the South Furious Merah site soon.

 

South Furious Ungu Well and South Furious Ungu ST Well

 

At the Ungu Prospect location, several samples of gas and one sample of oil were recovered. Subsequent laboratory analysis of the samples confirmed these preliminary findings. All the data collected through drilling operations at the Ungu Prospect location are currently being reviewed and after a more detailed interpretation will be developed to inform the relevant parties of the proposed next steps.

 

South Furious Merah Well

 

At the Merah drill location, evaluation and sampling efforts recovered one sample of gas. This sample has been sent for further laboratory analysis. Even though a sample of gas was recovered and brought to surface, our preliminary assessment is that hydrocarbon volumes seen in this well may not achieve commercially viable economic thresholds.

 

Rig: Next Steps

 

The Petro Vietnam-III drilling rig will soon be released for further drilling activity in Peninsula Malaysia with Hibiscus Malaysia Oil and Gas Limited.   

 

Costs

 

Capital costs (net of tax to SEA-H) estimated for the Ungu wells are expected to be in the range RM54 million whilst capital cost estimates for the Merah well are expected to be in the range RM27 million. At this stage, we expect to write off the capital cost estimates of RM27 million for the Merah well in the Group’s financial statements for the quarter ending 31 March 2024. The treatment of the costs of the Ungu well in the financial statements will be ascertained upon confirming the final results from the Ungu well, and will be announced at the appropriate time. All capital costs were funded from internal resources and the costs associated with the campaign have been included in the SEA-H cost recovery bank.

 

All other operations are progressing smoothly.

 

This announcement is dated 1 March 2024.






Announcement Info

Company Name HIBISCUS PETROLEUM BERHAD
Stock Name HIBISCS
Date Announced 01 Mar 2024
Category General Announcement for PLC
Reference Number GA1-01032024-00001