PETALING JAYA: Hibiscus Petroleum Bhd exercised its farm-in option by acquiring a 50% interest in the exploration permit VIC/P74 from its associate company 3D Oil Ltd.
The purchase will be done through its indirect wholly owned subsidiary Carnarvon Hibiscus Pty Ltd (CHPL).
Hibiscus told Bursa Malaysia that it will enter into a conditional farm‐in agreement with 3D Oil at a later date, whereby it has agreed that 3D Oil will remain the operator of the permit through the primary first three years of the prospect generation phase.
The group explained that the work programme consists primarily of purchasing reprocessed 3D seismic data to progress geological and geophysical studies in order to fine tune resource assessments and enable due prospect ranking.
It said that the two parties have also agreed that if there are wells required to be drilled after the first phase, CHPL will be the operator of the permit but 3D Oil will continue to be the operator for geological & geophysical operations.
“However, if there is a farm‐in for a substantial interest in the permit that will require drilling a well or wells by the farmee, the farmee will become the operator instead for all operations.”
Upon completion of CHPL’s acquisition in the interest, CHPL and 3D Oil will enter into a joint operating agreement.
The permit is adjacent to the Kingfish oilfield which has to date produced over one billion barrels of oil.
source https://www.thesundaily.my/business/hibiscus-exercises-option-for-stake-in-aussie-permit-DC1444353
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