Hibiscus Petroleum Plans to Acquire Hydra Energy to Grow Oil Resource Base



“In the current oil price environment, Hibiscus Petroleum has been consolidating its investments in assets that have discovered, proven, oil. The assets we are currently investing must be in production or have near term potential to be revenue generating. The Hydra Energy assets fall firmly in that category. They are also located in a geopolitically stable area where we are already present. These assets will give us scale in two major producing basins in Australia and will allow us to build a long term sustainable business there. We are truly excited by the opportunity,” Hibiscus Petroleum’s Managing Director, Dr. Kenneth Pereira said.

Ninety seven percent of the shareholders of Hydra Energy are funds advised by Global Natural Resource Investments (GNRI), while the remaining 3 percent of the outstanding shares are held by the Hydra Energy Management Team.

“I am very pleased that we have been able to reach agreement on the terms of a business combination between Hibiscus Petroleum and Hydra Energy. There is significant complementarity between our businesses and the combination creates a significant platform for further growth in Australia and Southeast Asia. Both companies are now in a stronger position to develop the significant reserves and resources they hold, to the obvious benefit of all our combined shareholders,” Hydra Energy’s Managing Director, Paul Nimmo, said as quoted in the press release.

In a related development, Hydra Energy management, GNRI and Hibiscus Petroleum management are in advanced discussions on a non-equity based $20 million financing facility to underpin the combined companies capital requirements. The facility will be utilized to fund existing operational commitments and allows Hibiscus Petroleum to explore new business opportunities.

Earlier on Aug. 6, Hibiscus Petroleum reported that the company and Malaysia's Ping Petroleum Ltd. had entered into sale and purchase agreements to each acquire a 50 percent stake in the Anasuria Cluster of oil and gas fields in the UK sector of the North Sea effective Jan. 1. Stakes in the Anasuria Cluster are held by Shell UK Ltd., Shell EP Offshore Ventures Limited and Esso Exploration and Production UK Limited.

Seen against this background, Hibiscus Petroleum is building its oil resource base globally. When the 2P/2C resources that are in the midst of being secured as part of the Anasuria transaction are combined with those in Australia, including those owned by Hydra Energy, Hibiscus Petroleum’s global net 2P/2C oil resource base would reach around 47 million barrels.


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