PETALING JAYA: HIBISCUS PETROLEUM BHD’s indirect wholly owned subsidiary, Anasuria Hibiscus UK Ltd (AHUK), has entered into a conditional non-binding term sheet to acquire Licence P2366 consisting of Blocks 15/18d and 15/19b from United Oil & Gas Plc and Swift Exploration Ltd for US$5mil (RM20.6mil).
The blocks are located offshore in the United Kingdom sector of the North Sea, about 250 km north-east of Aberdeen.
“The blocks include the Crown Discovery, which is based on information provided by United, consists of 2C contingent resources of eight million barrels of oil and six billion cubic feet of associated gas,” said Hibiscus in a statement.
This acquisition could potentially increase Hibiscus’ 2C contingent oil resources by eight million barrels and six billion cubic feet of associated gas.
The blocks are located 12 km south-east of the Marigold field, which together with the Sunflower field, was acquired by AHUK in October 2018.
In the statement, Hibiscus said that United and Swift were awarded Licence P2366 as part of the UK’s Oil and Gas Authority’s (OGA) 30th licencing round in August 2018, and they each hold a 95% and 5% participating interest, respectively.
This 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 Licence P2366 is subject to, among others, the completion of a satisfactory due diligence and receipt of OGA’s approval.
In addition to its 50% operated interest in the Licence P198 blocks of 15/13a and 15/13b containing the Marigold and Sunflower oilfields, AHUK also holds a 50% joint-operating interest in the P013 licence consisting of the Teal, Teal South and Guillemot A fields, as well as a 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 (O&G) for the Anasuria floating production, storage and offloading facility – are collectively known as the Anasuria Cluster.
It is located offshore in the UK sector of the North Sea.
United is an independent O&G start-up established in 2015. It is listed on the AIM market of the London Stock Exchange.
Swift, meanwhile, is a private O&G exploration company formed in 2003.
It focuses on developing exploration and production opportunities in the North Sea and the UK onshore for farm-out or sales.