KUALA LUMPUR (Oct 4): Hibiscus Petroleum Bhd said its indirect wholly-owned subsidiary Anasuria Hibiscus UK Ltd (AHUK) remains committed to working with the UK Oil and Gas Authority (OGA) to move the Quad 15 area development in the UK North Sea forward.

"While any potential tieback by AHUK of the Crown discovery (within the Quad 15 area) to the common infrastructure provided through the Marigold development would probably be in line with the Maximising Economic Recovery (MER) strategy of the OGA, such an outcome is uncertain at this time," it said in a filing with Bursa Malaysia on Monday.

Hibiscus was clarifying the acquisition by AHUK of a 100% participating interest in the P2366 Licence in the UK North Sea from London-listed United Oil & Gas PLC and private oil and gas exploration firm Swift Exploration Ltd.

"Given that a common offtake solution has not been finalised for the area, AHUK is currently unwilling to commit to further investment in the Licence. AHUK had requested for a 12-month extension of Phase A of the Licence without further material financial commitments but after due consideration, the OGA was unable to accommodate AHUK’s request due to the terms of the Licence. Therefore, the Licence automatically terminated on Sept 30, 2021," it noted.

In a separate filing, Hibiscus has proposed a final dividend of 1.0 sen per share for the financial year ended June 30, 2021, subject to shareholders’ approval at the forthcoming annual general meeting.

The company had on Feb 22 declared its first interim dividend of 0.5 sen per share, which was paid on April 8.

Hibiscus shares closed one and a half sen or 2.11% higher at 72 sen on Monday, bringing a market capitalisation of RM1.45 billion. The stock has risen 45% in the past year.