@sting79, i dont mind to stay with a company that even though having hard times but still trying hard to providing value to shareholders.

But what hibiscus doing now is destroying value (sell its asset in low price), and even director himself not subscribing the crps tranche 1 (not eating his own cooking). How can we still trust them to keep on generate value for company

okla, enough of my complains.
No points anymore to stay with a company that just talk big but never walk their talks.
Really lesson learnt, should have been alert when saw their impossible 2021 mission and also tiny shareholdings from BOD.

Time to say good bye and move on after 3 years with them (waste of time obviously)
Good luck for those who still remains

ya, it was initially thought at least they have some subscribers in hand for tranche 1.
But now it has 0 in hand, haha.
Please go and go with 10 more tranche la, perhaps 10c so the dilutive is "under controlled" as they mentioned.

Selling a 1 mil house in 10k price, bravo. Really in line with shareholders

haha, still remember the joke they mentioned in Q&A? subscriber is at 66c so whoever bought now means discount and 66c will be the base.
Seriously a joke from the clown company

what the....Suprisingly stupid move and not even secure any buyer for CRPS T1. Now it will be a race on keeping pushing down the price for more and cheaper tranche.
Enough of this tragedy, will sell now. Management is showing thier incompetence here

It is actually one of the best quarters in past 2-3 years by taking out the non- recurring other incomes.
Also have a look on its inventories and trade receivables. Significant increment indicates more business is coming in.

@micsoh, 10% premium....so it's conversion price is 40c+10%=44c, and how you know the boss are not the subscriber of the CRPS? By buying a lot more CRPS he can increase his stakes in hibiscus?

Only interest of the retail shareholders are being ignored here as we are not eligible to subscribe for CRPS. (Or perhaps you are eligible)

i have no doubt on the hibiscus' capability of getting good asset.
And is it a good time? i think yes due to the low oil price and many international player getting out from msia.

But is it a good time to raise fund? i think hibiscus just miss the golden opportunity.
What hibiscus doing now is selling its asset cheap to get fund and trying to buy another bigger asset that "probably cheap" .
Is it worth the bet? up to shareholders to think about

@micsoh, the asset quality obtained is one topic but the dilution effect of CRPS is another topic.
So if tranche 1 fail or not fully subscribed then will move on to consecutive tranche, and if price maintain as what it is then the conversion price for tranche 2 will be lower than 66c.

So with lower conversion price, each CRPS can convert more hibiscus shares, and current shareholder's stake in hibiscus will be further diluted. As an example, if u have 10% stake in a 1 million earning company, means your portion of earning is 100k.
But because of the company perform a CRPS, and your stake diluted to 1% and the company able to grow to 10 million. Will you enjoy the growth of the company?

So the losses to shareholders due to dilution is confirmed, but the potential growth is a question mark.
And the worst part is the more tranche it is, the heavier the dilution is.

so if let you have a friend wanna sell you personally his own house let say 1mil, but on market selling 600k per unit.

Will you think this deal is attractive enough? or more likely you will drop the deal and go and purchase from open market?

@micsoh, the CRPS price is RM1 but the conversion is based on the 5 days average price. And tranche 1 is fixed at 66c and do not based on asset acquired value (indeed they have no confirmed asset acquisition yet, just potential).

So if market price did indeed fall to 40 c in nov, and tranche 1 is not fully subscribed then tranche 2 will based on 5 days average again. So market price will indeed affect the attractiveness of CPRS.
And CRPS will worth more if the hibiscus price if let say go to rm1, because you are now eligible to convert 66c per share, hence a straight earning of 34c (excluding diluting effect).

The asset the acquired, i will leave it to the expert in hibsicus.
As we are not expert in valuing the potential and value of the asset remaining life and value.

But there sure is many potential asset in malaysia alone, Exxon, repsol, petrofac etc.
And hibiscus have a dedicated criteria on purchasing suitable asset, so they know what to choose with it.

But choosing right asset and CRPS conversion price is a loosely related thing. so even hibiscus doing a great job in choosing a good asset, yet if the CRPS conversion price is extremely low then means big boy able to buy in deep discount (let say Rm1 asset in 40c price) which will deeply dilute the current shareholder's stake and destroy the current value

So at the end, even hibiscus become highly lucrative betshareholders getting nothing in return as the stakes in hibiscus is getting smaller and smaller and also accompanying it up and down for many years

thanks @twynstar for sharing.
But the questions from HLIB, most of them are really a pointless or i would say without doing any homework beforehand. Most answers can be obtained from their circular.

For item 6, fully subscribed, hmm, i am skeptical on it. 2 billion is not that easy to be swallowed especially oil price is uncertain now.
Well, will see how it goes. Hibiscus price is getting lower everyday, the lower it goes the less attractive the tranche 1 become, and less subscriber for it.
Now is a tug war between hibiscus and the shark behind that wanna more discount on tranche 2.
I have to admit. i am not so positive so far

Frozen, no up and no down

So for the Hibiscus price to go above 66c determined by 2 party. haha
1 party that is the subscriber of 1st tranche, then they will wish to have hibiscus higher than 66c to make profits
another party is those who not subscribe to tranche 1, and wanna get more discount in coming tranche.

Of course, the big boy who buy a lot warrant C will cry, unless they can make magic happen to have stock price back to 1.12.

For us retailers, just can suck our thumb and watch the show

@micsoh, i really do hope so. If not then it sounds stupid and also all the 1st tranche subscriber will making losses too.
And Dr ken subscription will be a determining point, if he didnt subscribe full then i may consider to sell all. Coz it is a sign where management's interest not align with company's prospect and more on the side of cashing out

@micsoh, if open for shareholder then it might not success. Haha, shareholders generally defer from adding more money to company (even though it is for expansion).

Anyhow, i believe the main determining factor is the success of tranche 1. If tranche 1 get fully subscribed then the base point is 66c. But if need tranche 2 or 3,4,5 then, god knows how low can it go. I really hope hibiscus have enough potential subscriber before lauching this CRPS.

Also the quantity of shares to be issued is not fixed, the circular did said, they will report to bursa if more shares to be issued due to the conversion price is lower than current 66c

@micsoh, CRPS will not be converted but only once the acquisition done. So in theory, the shares price is not diluted even CRPS issued but only till acquisition done and CRPS converted.
Share price does not just with simple math and averaging as what calculated, it based on the earning and asset value behind.
So the share price will be adjusted based on the quality of the asset acquired by HIbiscus with CRPS

it depends on if tranche 1 is successful or not.
So there's possible chance the shark see blood in the water, press down the price to make tranche 1 looks unattractive and fail.
Hence go tranche 2 with lower average price where indicates the big boy can convert more shares with CRPS.
And go further and further with more tranche and lower price......

0.66 is a fixed price for first tranche of CRPS. It is fixed and confirmed. Unless, 1st tranche of CRPS not reaching the target, then the 2nd or consecutive tranche will based on the 5 days average + 10% premium.

Haha, such a big sell volume. Let see if hibiscs will close at 50c or not

Lol, oil price up, hibiscus still maintain. Haiz

Lol, if everyone think like that then it not going to happen. It it always unsure, no one can know 100% on the effect of CRPS

On behalf of the Board, HLIB and CIMB wish to announce that Dr. Kenneth Gerard Pereira (“Dr. Kenneth”) had on 8 October 2020, declared his intention to participate in the book-building exercise to be carried out in relation to the Proposed Private Placement of CRPS by subscribing in cash for a minimum of 8,000,000 and up to 50,000,000 CRPS at an issue price of RM1.00 per CRPS. The final amount of CRPS to be subscribed by Dr. Kenneth is subject to, amongst others, the availability of financing on acceptable terms from financial institutions.

haha, hibiscus just never change. open high then back to same point.
Oil price up, up a bit or no change
Oil price down then follow.

It is such a pity where hibiscus more and more disalign with oil price. Now oil price back to 42usd/bbl, but hib still stuck at 50c. Well, guess everyone just dont like oil sgock now due to its volatility

wao, so quiet now in Hibiscus.
No longer a hot stock nowadays.

north sabah each offtake is about 300,000bbls. For trafigura deals, so it take 2 & half cargo to fulfill.
Anasuria is 250k bbl for each offtakes.

Where to get 150k bbls per cargo....

Just in case someone ask why the cash and equivalents of Hibiscus drop significantly this quarter.
They have not receive 100 mil from the sales of oil in Dec, and been collected in Jan. Thus it is not recorded in this quarter

Cook's water injection is actually a production enhancement activity.
So it stopped because of subsea component failure will only make cook field's production back to normal without the extra boost. (Unless they shut in for maintenance).
Plus hibiscus's stakes in cook field is merely 19.3%, so the impact from it is actually really small.

@ongth60, good catch. SF-26 is wet means only no oil after drilled. This is definitely a bad news and thus the production boost from SF infill drilling is lower than expectation. So what hibiscus did is to side track and make it an water injection well. So it kind of cost saving rather than totally waste the money that invested at beginning

Marigold and sunflower will only contribute later than 2021. To fill up the gap, they will do potential acquisition from south east asia

Yes, it has been a practice for long for hibiscus to have a video on further explain on the qr result

this is worth to be highlighted:

"In the Update, the Group was pleased to report that average gross oil production from its
North Sabah asset improved by approximately 20% compared to the previous financial
quarter. This additional oil production was delivered through infill drilling projects carried out
as part of an aggressive production enhancement programme executed in calendar year 2019
(“CY2019”). This programme involved drilling a total of nine wells in Malaysia and the United
Kingdom and demonstrated Hibiscus Petroleum’s commitment towards growing its business
in these areas."

Now North Sabah is producing at 6,318bbl per day as compare to 5,194bbl/day. A whooping 21% growth in capacity

latest presentation on current QR :
https://www.youtube.com/watch?v=iLebQI_P54o

I have to be honest, actually this QR is not so good in my point of view.
The increase YOY is mainly due to 1 extra cargo on North Sabah, and oil price is not much different actually.
Most impact comes from the higher than expected taxation (it is none recurring) due to Shell's accounting. So this is passable.
But the amortisation and unwinding discount is really getting bad, it sounds like never ending and drain a huge sum of it (about 45 mil)

If without this, Hibiscus should have a flying high result. But alas, now is only a "ok" result only

It will be 2 cargoes from north sabah and 1 cargo from anasuria. Pretty much 100% sure

Looks like qr confirm out today then seeing such activeness.

Didnt see any hiccups so far that could affect the coming QR, unless some major shutdown but so far heard nothing.
And the upside is the australia farmout to conocophillips, depends on when will it recorded as revenue

Sentiment bad means good time to accumulate more.
And as long as hibiscus is continue making excellent profit, then its value will grow too.
That means more and more discount at current price

Hibiscus is quiet as usual before QR release.
Personal's expectation on Hibiscus upcoming QR should have 1 offtake from Anasuria and 2 offtakes from North Sabah.
Looking at net profit of 60 mil (with 15% safety margin).
QOQ increase should not be an issue, cross fingers on beating YOY.

Anyhow, hopes that this quarter Hibiscus can display its really earning capabilities.

And before i leave, my points always as below:

1. Will not sell hibiscus unless this world really stop using oil.
2.Hibiscus having great profitability, clear growth plan, transparent management. That's most of the crtical ingredient to make a company great.
3. No dividend will be given perhaps till 2021. It will not happen because it is totally not making sense.
4. Hibiscus' quarters will always up& down, but annual wise it is always growing. Focus more on annual report rather than short term quarter report.

All the best on investing, hopefully those who loyal get rewarded.

@Miz Raya, no point to argue with traders.
Win or lose only they know, we only care our own win or lose.

I think i might stop comment for some times on I3.
I get more peace of mind after some days away from all the noise of market and all the comments in I3. Guess you should do so too.

Might surface again perhaps when people really sharing some informative stuff here, not those hindsight prediction non-sense.

@B4b4, Profit margin of almost 50% , dont think is so high la. Tax already about 40% alone.

Wao,new TP set by hindsight stock god (80c) and professional gambler (70c). Let see if the stock god's TP will reach first or the bank analyst's TP will reach first.

Haha, i am for sure siding with hindsight stock god or professional gambler. 70c for a 0debt, high ROE, transparent management, nett nett company. Where to find such a good deal oh?

Too many retail investor come here for FIFO.
That's why with low volume also can drop 2c.
They bought in at high price and now have to cut loss because of brent cooled down.

And big boy will helps them on driving it down further to create extra panic

brent 70 usd/bbl, hibiscus still cannot fly. lol
Really no idea what big boy wan to do already.
Perhaps they all buy and wanna keep in freezer eh?

He predict 95c then for sure it will happen. He just doing charity here so all stupid monkey didnt lost their pants here

@wannabeinvestor, shhh dont ask, hindsight stock god FOMO, he always right as he is the only smart monkey here. Dont doubt him

https://oilprice.com/Energy/Energy-General/Europe-Cant-Get-Enough-Of-This-Popular-Crude.html

Maybe this explains why labuan/kimanis crude's premium over brent getting to historical high (9-10 dollar)
Low sulphur crude but medium API density crude is favourable choice now due to IMO-2020.