KUALA LUMPUR: Shares of Hibiscus Petroleum and its warrants posted a rebound during late morning on Friday after a heavy selldown the past week, despite the ongoing suspension in its Oman drilling works.
At 11.12am, its shares rose 18 sen to RM1.71 with some 5.52 million shares done between RM1.53 and RM1.79 while its warrants rose 15 sen to RM1.17 with 16 million unit traded heavily between RM1.03 and RM1.21.
The FBM KLCI rose to a fresh new high, up 12.78 points to 1,856.88. Turnover was 418.87 million valued at RM396.69mil. There were 331 gainers, 209 decliners and 294 counters unchanged.
To recap, Hibiscus, the first special-purpose acquisition company (SPAC) to be listed on the local bourse, has discovered oil in its Oman assets, but the first well is not commercially viable.
Kenanga Research had said the oil and gas exploration outfit told Bursa Malaysia that Masirah Oil Ltd, a jointly controlled entity of Lime Petroleum Plc, had suspended its first exploration well, Masirah North North 1 (MNN 1) in Block 50 Oman, for further evaluation on safety reasons.
“The group noted in a press statement that the well had been drilled to a total depth of about 1,000m below the mean sea level.
“According to the company, mud losses in two carbonate sections of the well prevented Masirah Oil from reaching its planned target depth,” it said, citing a StarBiz report.
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