Tuesday 25 August 2020

Anasuria Hibiscus UK Limited (“AHUK”), an indirect wholly-owned subsidiary of Hibiscus

Petroleum Berhad (“Hibiscus Petroleum” or the “Company”) has appointed:

(i) Gaffney, Cline & Associates Limited (“GaffneyCline”) to undertake an independent audit of the Reserves and Contingent Resources on the Anasuria Cluster (“Anasuria Cluster Report”); and

(ii) RPS Energy Consultants Limited (“RPS”) to undertake an independent audit and provide an assessment of the Contingent Resources of the Marigold Field Development License No. P198 Block 15/13a, and Sunflower Field Development License No. P198, Block 15/13b (“Marigold & Sunflower Fields Report”).

1.2 The Anasuria Cluster consists of the Teal, Teal South, Guillemot A and Cook fields which produce to the Anasuria Floating, Production, Storage and Offloading vessel, all located offshore in the United Kingdom (“UK”) sector of North Sea. AHUK holds 50% interests in the Teal, Teal South and Guillemot A fields, as well as 19.3% interest in the Cook field.

1.3 AHUK holds 50% interests in the Marigold & Sunflower Fields and is the operator of the fields.

2.0 Anasuria Cluster Report

2.1 GaffneyCline has undertaken many independent assessments of reserves and resources covering all types of reservoirs and hydrocarbons in all the world’s major petroleum basins, for more than 50 years.

2.2 In the preparation of the Anasuria Cluster Report, GaffneyCline had reviewed the reserves and resources estimates within the Anasuria Cluster as well as future capital and operating cost estimates provided by AHUK, in accordance with, and using definitions contained within, the Petroleum Resources Management System (“PRMS”), which was approved by the Society of Petroleum Engineers (“SPE”), the World Petroleum Council (“WPC”), the American Association of Petroleum Geologists (“AAPG”), the Society of Petroleum Evaluation Engineers (“SPEE”), the Society of Exploration Geophysicists (“SEG”), the Society of Petrophysicists and Well Log Analysts (“SPWLA”), and the European Association of Geoscientists and Engineers (“EAGE”) in June 2018, Version 1.01.

2.3 Based on the effective date of 1 July 2020, the proved plus probable reserves (“2P Reserves”) of oil and gas net to AHUK in the Anasuria Cluster were estimated to be 21.49 MMbbl and 9.94 bscf respectively.

3.0 Marigold & Sunflower Fields Report

3.1 RPS is an independent consultancy specialising in petroleum reservoir evaluation and economic analysis.

3.2 RPS has reviewed the latest geological and engineering data, and the seismic interpretation, static modelling and dynamic modelling generated by AHUK, to estimate the statistical ranges of Low, Best and High case stock tank oil initially in place (“STOIIP”) and recoverable resources based on the current development plan. In addition, RPS has reviewed cost estimates to develop and operate the Marigold Field but not the Sunflower Field as the latter is part of the planned Phase 2 development which has not been finalised at this time. All definitions and estimates are based on the 2018 PRMS of SPE/ WPC/ AAPG/ SPEE/ SEG/ SPWLA/ EAGE.

3.3 Based on the effective date of 1 July 2020, the best estimate contingent resources (“2C Resources”) of oil net to AHUK in the Marigold & Sunflower Fields were estimated to be 24.9 MMstb.