Thursday 18 July 2019

Hibiscus Petroleum Berhad announced that its indirect wholly‐owned subsidiary, Anasuria Hibiscus UK Limited (“AHUK”), has entered into a conditional non‐binding term sheet to acquire License P2366, from United Oil & Gas PLC and Swift Exploration Limited for a total cash consideration of up to USD5 million.

The Blocks are located offshore in the United Kingdom sector of the North Sea, approximately 250km northeast of Aberdeen. The Blocks include the Crown Discovery, which based on information provided by United, consists of 2C contingent resources of 8 million barrels of oil and 6 billion cubic feet of associated gas. The Blocks are located 12km south‐east of Marigold field, which together with the Sunflower field, was acquired by AHUK in October 2018.

United and Swift were awarded License P2366 as part of the United Kingdom’s Oil and Gas Authority’s 30th Licencing Round, in August 2018, and they each hold 95% and 5% participating interest respectively.

The payment terms of the proposed acquisition would commence with a non‐refundable payment of USD1 million to the Sellers upon completion of the Sale and Purchase Agreement. Subject to further milestones being achieved post SPA completion, an additional sum of up to USD3 million will be paid before the end of 2020. A further USD1 million will be paid once the field is on production. In the unlikely event that AHUK decides not to make the post‐completion payments, Licence P2366 will return to the Sellers. The proposed consideration was arrived at on a similar basis to the consideration paid for the Marigold and Sunflower fields as they are seen as being additive to the existing Marigold and Sunflower development.

The proposed acquisition of License P2366 is subject to, amongst others, completion of satisfactory due diligence and receipt of OGA’s approval.

In addition to its 50% operated interest in Licence P198 blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, AHUK also holds 50% joint‐operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields, as well as 19.3% non‐operating interest in the P185 licence consisting of the Cook field. The Teal, Teal South, Guillemot A and Cook fields which produce oil and gas to the Anasuria Floating production storage and offloading facility are collectively known as the Anasuria Cluster. The Anasuria Cluster is located offshore in the United Kingdom sector of North Sea.