Hibiscus to acquire UK North Sea license for $5 million

Malaysian operator Hibiscus Petroleum has entered into a conditional sale and purchase agreement to acquire License P2366, from United Oil & Gas and Swift Exploration Limited.

Hibiscus entered into the agreement to acquire the license through its indirect wholly‐owned subsidiary Anasuria Hibiscus UK for a total cash consideration of up to $5 million.

The blocks are located offshore in the United Kingdom sector of the North Sea, some 250 kilometers northeast of Aberdeen.

The license includes the Crown Discovery, which consists of 2C contingent resources that range between 4 to 8 million barrels of oil. The blocks are located 12 kilometers southeast of Marigold field, which together with the Sunflower field, was acquired by Anasuria in October 2018.

United and Swift were awarded the license as part of OGA’s 30th Licencing Round in August 2018, and they hold 95 and 5 percent participating interest respectively.

Anasuria holds 50 percent operated interest in Licence P198 Blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, in addition to 50 percent joint‐operating interests in the P013 license consisting of the Teal, Teal South, and Guillemot A fields, as well as 19.3 percent non‐operating interest in the P185 license consisting of the Cook field.

The Teal, Teal South, Guillemot A, and Cook fields which produce oil and gas to the Anasuria FPSO are collectively known as the Anasuria Cluster.

The proposed acquisition of License P2366 will begin with a non‐refundable payment of $0.1 million to the United and Swift and a further $0.9 million upon completion of the SPA.

Subject to further milestones being achieved post SPA completion, an additional sum of $3 million will be paid within seven business days of the actual date of approval of the Marigold field development plan which is expected to be received by the end of 2020.

In addition, up to $1 million will be paid through an overriding royalty scheme once the Crown discovery has begun production.

Given its proximity to Marigold, the contemplated development of Crown is based on a single well subsea tieback to the Marigold field.

The proposed acquisition of License P2366 is subject to the receipt of OGA’s approval for the assignment of the license to Anasuria and the appointment of it as the operator.

If the conditions have not been fulfilled or waived by the parties by December 31, 2019, or such later date no later than March 31, 2020, as the parties may mutually agree, the proposed acquisition would be terminated according to the terms of the SPA.

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