Polo Resources Limited HIBISCUS PETROLEUM - INVESTMENT UPDATE (8707J)
April 04 2018 - 12:56PM
UK Regulatory
TIDMPOL
RNS Number : 8707J
Polo Resources Limited
04 April 2018
4 April 2018
Polo Resources Limited
("Polo" or the "Company")
HIBISCUS PETROLEUM - INVESTMENT UPDATE
HIBISCUS COMPLETES ACQUISITION OF THE NORTH SABAH PSC FROM
SHELL
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that its investee company,
Hibiscus Petroleum Berhad ("Hibiscus") has announced that its
indirect wholly owned subsidiary SEA Hibiscus Sdn ("SEA Hibiscus")
has completed its acquisition of a 50% participating interest in
the 2011 North Sabah Enhanced Oil Recovery Production Sharing
Contract ("North Sabah PSC" or the "PSC") and the joint operating
agreement ("JOA") in relation to the PSC.
Highlights:
-- Hibiscus Petroleum secures second revenue stream with
completion of the transaction to acquire 50% participating
interests in the North Sabah PSC from Shell.
-- Operatorship of the assets have been transferred from Shell to SEA Hibiscus.
-- Significant boost in Hibiscus Petroleum's oil production and 2P Reserves.
To recap, SEA Hibiscus had, on 12 October 2016, entered into a
conditional sale and purchase agreement ("SPA") with Sabah Shell
Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd
(collectively "Shell") to acquire Shell's participating interests
in the PSC between Petroliam Nasional Berhad ("PETRONAS"), Shell
and PETRONAS Carigali Sdn Bhd ("PETRONAS Carigali"), and the JOA
between Shell and PETRONAS Carigali for the total purchase
consideration of US$25 million.
The North Sabah PSC includes 20 offshore platforms across four
producing fields located in the South China Sea, off the west coast
of Sabah, and the Labuan Crude Oil Terminal located in the Labuan
Federal Territory, in Malaysia. The fields have been producing
since 1979 and the PSC provides the Group with operatorship and
production rights up to 2040.
Furthermore, the North Sabah PSC will significantly boost the
Group's production and proven and probable reserves (2P Reserves).
On a 100% PSC basis, the total oil production averaged
approximately 14.6 kbbls/day in 2017, with 2P Reserves and
contingent oil resources (2C Resources) as of 1 January 2018 at
approximately 40.9 mmbbls and 79 mmbbls, respectively.
Having met all the conditions precedent under the SPA, the
transfer of operatorship from Shell to SEA Hibiscus concluded on 31
March 2018 and SEA Hibiscus thereby assumed the role of operator of
the North Sabah PSC. As operator, SEA Hibiscus will be responsible
for the day-to-day operations and management of the work activities
of the assets within the North Sabah PSC.
Datuk Michael Tang, Executive Chairman of Polo, commented: "We
are excited by Hibiscus' acquisition of Shell's participating
interest in the North Sabah PSC, which during 2017, the entire
field achieved an average daily production of 14.6 kbbls. We saw
the North Sea Anasuria Cluster oil field transform Hibiscus from an
exploration company to being a profitable production company and
this new acquisition will significantly increase total petroleum
production and further enhance the company's value. We look forward
to an update of the company's progress."
The full details of these announcements can be found at
www.hibiscuspetroleum.com.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor
Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & joint broker)
- John Depasquale +44 (0)20 3328 5657
Liberum Capital (Broker)
- Henry Freeman +44 (0) 20 3100 2000
Blytheweigh (Public relations)
- Tim Blythe, Nick Elwes,
Camilla Horsfall +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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