Marigold deal to substantially raise Hibiscus’ output

PETALING JAYA: Hong Leong Investment Bank (HLIB) Research is positive on Hibiscus Petroleum Bhd’s subsidiary Anasuria Hibiscus UK Ltd’s move to enter into a unitisation and unit operating agreement for the development of the Marigold field in the UK’s Central North Sea.

The research unit said in a report the move marks a step further for Hibiscus to tap into its best estimate of contingent resources.

It said subject to the conclusion of field development plan submission and regulatory approval process, Hibiscus’ management guided it will roughly take 12 months from the submission day to reach final investment decision and probably take Anasuria about four years to achieve first oil.

“Hibiscus’ net production will peak in the financial year 2025 (FY25) at 25,000 barrels of oil equivalent per day, which serves as another level of growth for the group,” it said.

The research house said although the production rate of the oil field is still uncertain at this juncture, it will substantially elevate Hibiscus’ net production due to the sizeable contingent resources within the field.

In line with that, HLIB Research has maintained a “buy” call on the upstream oil and gas production company with a higher target price of RM1.29 from RM1.12 previously.

This is based on the net present value of all its producing assets’ future free cash flows, after accounting for each asset’s targeted lifespan.

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