Polo Resources Limited HIBISCUS PETROLEUM - INVESTMENT UPDATE (4333M)
13 October 2016 - 5:00PM
UK Regulatory
TIDMPOL
RNS Number : 4333M
Polo Resources Limited
13 October 2016
13 October 2016
Polo Resources Limited
("Polo" or the "Company")
HIBISCUS PETROLEUM - INVESTMENT UPDATE
Polo Resources Limited (AIM: POL), the natural resources
investment company with interests in oil, gold, coal, copper,
phosphate, iron and vanadium, is pleased to announce that its
investee company, Hibiscus Petroleum Berhad (HIBI: MK) ("Hibiscus")
has reported that its indirect wholly-owned subsidiary, SEA
Hibiscus Sdn Bhd ("SEA Hibiscus") has entered into a conditional
sale and purchase agreement with Sabah Shell Petroleum Company
Limited and Shell Sabah Selatan Sdn Bhd (collectively "Shell") to
acquire Shell's entire fifty percent participating interests in the
2011 North Sabah Enhanced Oil Recovery Production Sharing Contract
("PSC") for a purchase consideration of USD25 million (excluding
post completion adjustments and reimbursements to Shell). Shell's
interest also include operatorship responsibilities which would be
transferred to SEA Hibiscus through a transfer of operatorship
program. This acquisition is expected to complete in 2017 and is
subject primarily to obtaining regulatory approval of Petroliam
Nasional Berhad ("PETRONAS") and consent of Petronas Carigali Sdn
Bhd ("Petronas Carigali"), a fifty percent joint venture partner in
the PSC. The PSC comprises of four producing oil fields and
associated infrastructure; i.e. St Joseph, South Furious, SF30, and
Barton oilfields which are located in a key hydrocarbon province in
Malaysia and have delivered reliable production since coming
onstream in 1979. The PSC also contains pipeline infrastructure and
the Labuan Crude Oil Terminal, an onshore processing plant and oil
export terminal. The PSC provides long-term production rights until
2040 with identified future development opportunities expected to
add incremental 2P/2C resources up to 79 million barrels, this
bodes well for the increased trajectory of Hibiscus Petroleum into
its next milestone of growth. The fields are reported by
independent technical valuer, RISC Operations Pty Ltd to be
producing over 16,000 barrels of oil per day and have an estimated
remaining developed reserves (2P) of 62 million barrels as of April
2016.
Petronas Carigali is a wholly-owned subsidiary of PETRONAS which
is the national oil company of Malaysia. PETRONAS is a fully
integrated oil and gas multinational ranked among the largest
corporations on FORTUNE Global 500(R).
Some details of the PSC:
Units Total
-------------------------- --------- ------
Average Daily Production
20151 kstb/d3 18
-------------------------- --------- ------
Remaining Reserves
(2P) 2 MMstb4 62
-------------------------- --------- ------
Contingent Resources
(2C) 2 MMstb 79
-------------------------- --------- ------
Platforms/Structures1 19
------------------------------------- ------
Wells 135
------------------------------------- ------
1. Actuals (source: Shell).
2. Figures derived by independent technical valuer, RISC
Operations Pty Ltd, based on 1005 interest in the PSC, as of
January 2016.
3. Thousand stock tank barrels per day.
4. Million stock tank barrels.
For further details on Hibiscus, please see
www.hibiscuspetroleum.com.
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
For further information, please contact:
Polo Resources Limited
Kudzayi Denenga, Investor
Relations +27 (0) 787 312 919
ZAI Corporate Finance Ltd
(nominated adviser)
Ray Zimmerman, John Treacy +44 (0) 20 7060 2220
Liberum Capital (broker)
Henry Freeman +44 (0) 20 3100 2000
Blytheweigh (public relations)
Tim Blythe, Nick Elwes, Camilla
Horsfall +44 (0) 207 138 3204
About the Company
Polo Resources Limited is a natural resources investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For further
details on Polo, please refer to: www.poloresources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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