PETALING JAYA: Hibiscus Petroleum Bhd
is firmly in execution mode, with the company focused on delivering its development pipeline to lift production by 40% to 50% to 35,000 barrels of oil equivalent per day (boepd) by mid-2026, says BIMB Research.
The research house added that the growth would be underpinned by two development projects notably the SF30 water injection programme and the Teal West development.
The programme is a two-phase project in the South Furious 30 (SF30) field offshore Sabah, designed to enhance oil recovery by injecting water into the reservoir to maintain or increase pressure.
The oil and gas company has completed the drilling at the Teal West field in the United Kingdom’s North Sea with backload and demobilisation activities. Fluids samples from the well showed a larger oil-bearing zone than forecast.
As such, the Teal West field is estimated to contain proved and probable oil reserves of 4.5 million barrels which is 32% increase over the previously reported 3.4 million barrels.
It noted that the company would execute the subsea installation activities in early second quarter of 2026 (2Q26) with first oil in mid-2026.
Management guided that average oil production from the Teal West field for financial year 2027 (FY27) is estimated at 7,000 barrels per day, almost quadruple existing UK oil and gas production of 1,778 boepd in FY25.
It is reiterating its “buy” call on Hibiscus with an unchanged discounted-cash-flow-derived target price of RM2.10.
Hibiscus saw its net profit declining to RM74.61mil for the fourth quarter ended June 30, 2025 (4Q25) from RM108.68mil a year earlier on the back of lower production volumes and crude oil prices in Peninsular Malaysia and Sabah, as well as higher impairment charges, expenses and finance costs.
