Hibiscus to write off RM27mil due to commercially unviable well

KUALA LUMPUR: Hibiscus Petroleum Bhd plans to write off RM27 million in capital cost estimates for its South Furious Merah exploration well after an initial assessment found that the hydrocarbon volumes seen in the well may not achieve commercially viable economic thresholds.

The South Furious Merah exploration well is part of Hibiscus Petroleum’s drilling programme by its indirect wholly-owned subsidiary, SEA Hibiscus Sdn Bhd, to drill three exploration wells, including the South Furious Ungu and South Furious Ungu ST wells, to evaluate prospective Near Field exploration locations within the boundaries of the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract.