The Star Paper

PETALING JAYA: Hibiscus Petroleum Bhd has been shortlisted for the second round of Newfield Exploration Co’s oil and gas assets in Malaysia and China, with the bids expected to be submitted by Sept 26.

Only a handful of companies out of the 65 companies that had initially expressed interest for Newfield’s assets worth some US$1.7bil (RM5.27bil) have been selected for the second round, said Hibiscus managing director Dr Kenneth Pereira.

Hibiscus is being backed by RHB Investment Bank Bhd, United Overseas Bank Ltd and ANZ Bank for the bid. Goldman Sachs is the investment bank mandated by Newfield to manage this two-bidding sale process.

In the meantime, in what is considered an extremely significant milestone for Hibiscus, it will start the drilling programme 10 weeks from now in the Block 50 concession in Oman.

Three locations have been picked, and the prospects of Masirah North North #1 and Masirah North East #1 have been selected for this drilling programme. Hibiscus has internally estimated that these prospects have prospective resources of about 160 million barrels or a value of some US$1bil (RM3.3bil).

Should Hibiscus strike oil, its 22% net share of this would be worth some US$220mil (RM722mil).

Hibiscus had acquired a 35% stake in Lime Petroleum plc for US$55mil (RM170mil) as its qualifying acquisition in April 2012. Lime has a 64% participating interest in the Oman Block 50 concession.

Pereira believes that with the use of its proprietary Rex Virtual Drilling technology, Hibiscus stands a good chance of striking oil.

“If Oman is successful, then the results would be known by mid-December this year. Revenue would start contributing in six to nine months’ time,” Pereira told a press conference after the company’s AGM.

More importantly, the commercial success of the two prospects in Oman would prove once and for all that the Rex technology works. By then, we would have a very different sort of problem,” said chairman Zainul Rahim Mohd Zain.

On Monday, Hibiscus announced that its jointly controlled entity, Lime Petroleum, through its subsidiary Masirah Oil Ltd, had awarded a drilling rig contract to Aban 7 Pte Ltd for the execution of its drilling programme in the company’s Oman Block 50 concession.

The contract will be effective for a minimum period of 50 working days, which is expected to commence between mid-October and mid-November this year. If the wells yield successful discoveries, then production could potentially be expected to begin by the first half of 2014.

Aban 7 is an international drilling contractor that owns and operates a fleet of 18 drilling rigs.

On HiRex Petroleum Sdn Bhd, a 50:50 joint venture between Hibiscus and Rex South East Asia Ltd, Pereira said that it was currently evaluating 12 prospects and was targeting to seal at least two prospects by year-end.

Chengyee not only hibiscus down, infact majority counter goes down today. In singapore not a single counter up at the closing today. No jocker will try to push the market like today. Just got a message saying hibiscus ready to move anytime. I treat the message as rumour as i am holding it for long term. So sabarlah.

I fully agree. One should hold till end 2014 to reap maximum profit, just treat your investment as Annual FD.

Hi Guys, the August 2013 Investor Presentation is out. Can download at their website.

Hibiscus Annouce drilling date:

Kuala Lumpur, 19 August 2013:
Hibiscus Petroleum Berhad (Hibiscus Petroleum)today announced that its jointly-controlled entity, Lime Petroleum Plc (Lime), through its subsidiary Masirah Oil Limited (Masirah),has awarded a drilling rig contract to Aban7 Pte Ltd(Aban) for the execution of its drilling programme in the company’s Block 50 Oman concession. The contract will be effective for a minimum period of 50 working days which is anticipated to commence between mid-October and mid-November this year. Under the contract, Masirah will procure the services of the Aban VII drilling rig, an independent leg cantilever jack-up rig to spud and drill a minimum of two exploration wells.After an international tender exercise and careful evaluation of available rigs in the region, the Aban VII was chosen for several reasons including certainty of the rig’s delivery schedule, strong past operating
performance, crew competence and good health, safety and environment record alongside good regional support. Aban7 Pte Ltd is an international drilling contractor that owns and operatesa fleet of 18 drilling rigs. Commenting on the award, Dr Kenneth Pereira, Managing Director of Hibiscus Petroleum said, “After months of meticulous planning and effort, we are excited to get our drilling program underway. From our days as Malaysia’s first SPAC and being the country’s first and only listed independent exploration & production company, the awarding of this contract represents a significant milestone for us. Through the use of Rex Virtual Drilling, we believe we stand a good chance of success and hope to reward our loyal shareholders.
The prospects of Masirah North North #1 and Masirah North East #1 have been selected for drilling after in-depth technical evaluation and verification using the proprietary Rex Virtual Drilling technology 1, in addition to the confirmations provided via conventional methodologies. These prospects are internally estimated to have prospective resources of about 160 million barrels. Hibiscus Petroleum acquired a 35% stake in Lime for USD 55 million as its Qualifying Acquisition in April 2012. Lime has a 64% participating interest in the Oman Block 50 concession, whilst Petroci Holding, the national oil company of Ivory Coast ,has a 36% participating interest.
If the wells yield successful discoveries,production can potentially be expected to begin by the first half of 2014 through utilisation of an early production system.

Oil reserve is calculate base on NVA (net asset value) US5 per barrel (oil in the ground). If they develop and sell it, the profit will be much2 higher. In their 1st June 2013 Invertor presentation kit, they estimated about 200 million barrel of oil deposit in the two lead they are drilling come this early october. Oman block 50 is a hugh area and there are many leads. Earlier AkerGeo have estimated about 390 million barrel of oil (same area)

Agreed

Noted with thanks. Will be extra carefully.

In order to see this type of share price (RM 2 and above) i guess one have to wait for another 3 to 5 month. At the moment they are in negotiating and preparation stage . Come early October when the drilling work start in Oman Block 50 than only can see more share price movement. The drilling work takes about 40 days. Investment in this counter takes time, not for goreng. Good news is only goods news from this counter for now. Currently the price is staying above the 200MA (bullish mood).

Yes, hopefully by 2015 it reach RM 5.00. Can go world tour for 2 month. Just joking.

US market now down about 176 point, i really dont understand their culture. Their economy growing and they get worry about fed move. When their economy goes down they also worry and blame IMF and world bank not doing enough to help euro economy. By right they should be happy cos Euro and US also recovering. I think they do it purposely to push down their stock and collect at lower price before the economy get stronger.

Depend who do it. If u use their company secretary to do it, its takes more than a week and if u use your ebroking house than less than a week.

They purposely do it so that people will think it's cheaper to buy warrant and convert to mother share, this way they can get some working capital.

wrong

Can see something good coming. Yesterday Rex announce that they have enter into new E&P licences in Trinidad and Tobago with Pareto Staur, the share price went up at time high of 83.5 and close at 82 cents. By right after the news, share price should go reverse but today they are holding quite well, in fact brake yesterday high (new high 84)and now holding aroung 83 cents. Today we see Hibiscus share hold strongly(at 1.57/1.58 level), can witness people chasing the warrant share up to 1.05. Inl kalilah.

Rex International now trading at 83 cents (all time high was 83.5 cents)

"Flowerpower" any news from your end.

I have post some article on Rex International at Rex International thread.

Nolah, not yet start drilling mana dapat oil. Could be news on Sharjah block, i understand that they have been taking with few big oil company to do farm-in or announcing the drilling date for Oman Block 50 Or news on HiRex. Whicheverlah. Janji share price keep going up will do.

I trade using Hong Leong eBroking, they provide delay price feeding. Now at all time high, 81 cents.

Rex new high today at 79.5 cents.

At the moment non from me except Rex Int which list in Singapore keep going higher. Maybe some good news coming soon.

It will be good if the price can stay above RM 1.50 tomorrow.

Rex International is at all time high at 72.5 cents. Hope they will annouce some good news.

Anbz, which paper?

I dont predict as i said earlier i am holding it till 2015 unless the price hit RM3.

Because player want to make quick profit. Entry price is very important.

Hibiscus chart show price downward but people are actually collecting. This could means people are pressing down the price to collect at lower price. If this is correct, Hibicus could rally very soon.

Today Rex International share hit a high of 68.5 cents and close at 67.5 cents.

Already 0.085 cents, decide yourself.

People start collecting few weeks ago, time to move.

Hi limchimleong, yes, i am putting this investment under long term at least up to 2015 unless the share price reach RM3 and above. Will collect some more if it drop further. Thanks.

hi limchimleong can post in english, i cant read chinese. Thanks

Can only see action starting Sept onward, this is because drilling start early oct. Also they expect their Australian permit late Sept or 4th quarter. Their chairman said all good new comes in 2014.

Thanks

Hi elmo888, is this how its goes: for Oman Block 50
Hibiscus Share Price RM1.30 if they strike 11.5 mil barrel in Oman
RM1.50 if they strike 13.6 mil barrel ' ' ' ' ' '
RM2.40 if they strike 15.0 mil barrel ' ' ' ' ' '
RM3.00 if they strike 25.0 mil barrel ' ' ' ' ' '
RM4.60 if they strike 50.0 mil barrel ' ' ' ' ' '
RM5.20 if they strike 60.0 mil barrel ' ' ' ' ' '

Thanks

Sorry not 60 cents, its 56 cents.

Manage to buy some share of REX International in SGX at 50.5. Now trading at 60 cents.

Hi Elmo888, is it possible for you to post out the possible fair value of HIBISCUS based on the different probabilities of success from your earlier posting.

Joke aside, his counter chart start showing people are accumulating the last two days. I don't have many and bought at 28 cents.Hope selling stop here otherwise ???

Hibiscus March 2013 Annual Report is out. Drilling for Oman Block 50 delay to 4th quarter 2013. Reason delay given in the report. Everyting is in their annual report, from Hibiscus to Hirex. Cheers !!!

Ladahitam need some advice from you. I bought some at 28 cent yestetday. Should i hold or cut loss. Listening to their conversation is quite scary.

Question is : Who is the buyer for the off market transaction?

Now just have to hope that their account is genuine. So much cash in hand better than many many malaysia listed company. So cheap and yet no company want to take over and use their cash.

Saw it. Thanks

Cant find the annoucement lah.

Wow ! Really sad to hear this. Dont they average? Thank all for the explanation.

Their cash and Bank balance is RM 1.2+ bil and bank borrowing is less than RM 30 mil. What is wrong with this company? Anyone know of any accounting fraud of this company? Pls share. Thanks.

I see, still holding till today?