KUALA LUMPUR (Jan 7): Hibiscus Petroleum Bhd (KL:HIBISCS) on Wednesday (Jan 7) announced that its Teal West field in the UK now has 4.5 million barrels of 2P reserves, up 32% from 3.4 million barrels after the drilling of a new well and data review.

In a filing with the exchange, the company said the increase is due to a deeper-than-expected oil-water contact, meaning more oil underground than previously thought.

Drilling is complete, and subsea installation work is expected to start in early Q2 2026, with first oil targeted for mid-2026.

Average production in the financial year 2027 is estimated at 7,000 barrels per day, over four times Hibiscus’ UK output in FY2025. Oil will be processed and exported via the Anasuria FPSO.

“We are very pleased with the results from the Teal West well,” managing director Datuk Dr Kenneth Pereira said. “These improved 2P reserves are a positive development that will take us to our 2026 target of achieving 35,000 boe per day, a 32% increase from production of 26,500 boe per day in 2025.”

Meanwhile, its 9.34%-owned associate, 3D Energi, said its Australian joint venture may have made one of the largest gas discoveries in the Otway Basin.

Drilling at the Charlemont-1 well offshore Victoria showed gas in multiple sandstone layers — Waarre A, B, and C — though operations were halted early due to higher-than-expected formation pressures. The well reached 2,753 metres and penetrated about 70m into the main target, Waarre A.

Gas was first found in the Waarre C reservoir on Jan 2 after a liner was installed, with similar readings in the B and A layers. Further tests are needed to confirm the size and quality of the gas.

Charlemont-1 targets the Charlemont B Prospect, near the La Bella gas discovery, and could also help evaluate nearby prospects along the same geological trend.

3D Energi holds a 20% interest in the project. ConocoPhillips Australia is the operator with a 51% stake, while Korea National Oil Company owns the remaining 29%.

Executive chairman Noel Newell said the results were encouraging, particularly the indication of gas in the Waarre C reservoir, which was not anticipated prior to drilling.

The presence of gas across multiple stacked reservoirs reduces exploration risk for nearby prospects along the Charlemont Trend, he said, adding that a successful appraisal could point to one of the largest gas clusters in the Otway Basin.

Hibiscus shares were down three sen, or 1.94%, to RM1.52 after the announcement, valuing the company at RM1.12 billion.