KUALA LUMPUR (Sept 1): Hibiscus Petroleum Bhd and Ping Petroleum UK Plc have each entered into a separate but identical farm-in agreement to take over 42.5% equity interest each in Licence P2451 from Rapid Oil Production Ltd.

The remaining 15% in Licence P2451 will remain with Rapid Oil, said Hibiscus in a bourse filing. Hibiscus entered into the farm-in agreement via its indirect wholly-owned Anasuria Hibiscus UK Ltd. Ping Petroleum UK is an indirect subsidiary of Dagang NeXchange Bhd.

"The licence holds an undeveloped oil field, Fyne Field, located in the Central North Sea, UK, with an estimated 75 MMboe STOOIP (stock tank oil initially in place). Upon completion of the proposed acquisition, Anasuria Hibiscus shall be appointed as operator of the field development. 

"First oil is expected in 2026, whereupon Anasuria Operating Company Ltd (equally owned by Anasuria Hibiscus and Ping Petroleum) will take over as operator of the Fyne production from Anasuria Hibiscus," Hibiscus said.

According to Hibiscus, Fyne Field has a water depth of about 90m. "As it is approximately 16kms from the Anasuria Floating Production Storage and Offloading (FPSO) vessel, the plan is to initially tie-back a single well development to the FPSO vessel. The addition of the Fyne Field is expected to increase the value and extend the field life of the existing Anasuria Cluster of assets," it added.

Likewise, Ping Petroleum UK's managing director Zainal Abidin Jalil, in a separate statement, said Fyne represents a material addition to the group's portfolio and adds to the value of its existing infrastructure at Anasuria, as it will extend the field life and improve the value of its ongoing integrity and asset life-extension work.

"We also look forward to expanding our long-term partnership with Hibiscus Petroleum, as well as working with our new joint venture partner – Rapid Oil,” he added.

The Anasuria Cluster is a balanced portfolio of producing, appraisal and exploration licences in the UK North Sea located 175km east of Aberdeen. It also incorporates the Teal, Teal South, Guillemot A (in which Hibiscus and Ping Petroleum UK jointly hold a 50% interest in each field via Anasuria Operating Company Ltd) and the Cook field (in which Hibiscus and Ping Petroleum UK have a 19.3% interest).

All of these fields share the Anasuria FPSO host platform and lie in a water depth of 94m. Ping and Hibiscus each has a 50% share of the Anasuria FPSO.

The farm-in agreement is subject to approval by the North Sea Transition Authority.

Hibiscus’ shares closed 7.5 sen or 7.85% higher at RM1.03 on Friday, giving the oil and gas exploration and production company a market capitalisation of RM2.06 billion.

DNeX shares rose 1.5 sen or 3.33% to close at 46 sen, for a market captalisation of RM1.47 billion.