Hibiscus Petroleum buys 50% of Anasuria Cluster

PETALING JAYA: Hibiscus Petroleum Bhd's indirect subsidiary Anasuria Hibiscus and Ping Petroleum UK Ltd have jointly entered into two sale and purchase agreements (SPAs) to takeover operating rights of the the Anasuria Cluster field and associated infrastructure for US$105 million (RM409.71 million).
The first SPA was signed with Shell UK Ltd and Shell EP Offshore Ventures Ltd (Shell EP) while the second SPA was signed with Esso Exploration and Production UK Ltd (Esso UK).
The deal will see Hibiscus obtain 50% operating rights in operated producing fields, namely Guillemot A, Teal, Teal South.
HIbiscus and Ping Petroleum will also hold a 38.65% stake in the Cook field, and takeover the Ansuria floating production storage and offloading unit and related equipment.
"This acquisition will complete our company's strategy of acquiring a balanced portfolio of assets that includes exploration, development and producing assets within five years of listing our company. We will be able to cut our teeth as operator in conjunction with Ping Petroleum in one of the world's foremost oil and gas production basins."
"The Anasuria Cluster has development potential for a company of the size of Hibiscus Petroleum and provides us with an excellent foundation upon which we can build a significant North Sea presence," said Hibiscus Petroleum managing director Ken Pereira.
Hibiscus' share makes up about US$52.5 million.
The initial consideration of US$30 million will be paid via a loan facility and internally generated funds from the Anasuria Cluster. The balance due will also be funded from funds generated from the Anasuria Cluster.
The proposed acquisition is expected to be completed by the first quarter of 2016 and is expected to contribute positively to the Hibiscus group's earnings for the financial year ending June 30, 2016.
The proposed acquisition is subject to approvals, consents and/or waivers being obtained from Hibiscus Petroleum shareholders, the UK Government's Secretary of State for Energy and Climate Change, relevant third parties and other relevant authorities.
CIMB Investment Bank Bhd has been appointed as the principal adviser to Hibiscus Petroleum for the proposed acquisition.
In a separate filing, Hibiscus Petroleum said it has acquired Atlantic Hibiscus Sdn Bhd, the sole shareholder of Anasuria Hibiscus on Wednesday (Aug 5), making Atlantic Hibiscus a wholly-owned subsidiary of Hibiscus Petroleum.
Trading in the securities of Hibiscus Petroleum which were suspended yesterday, resumes today.