Better to just wait for the QR report itself. Hopefully all good. It will stabilize the counter at least. So far, all signs are negative as the counter keep dropping everyday. I wish someone know the truth and can tell us. If we know what the real story and what the support level is we can decide.

If it is going to be good news, then why the price keep going down? It just does not male sense.

Too many naysayers here. Any good news? The counter really have taken a severe beating already. Wish the board members can come up and say something more positive soon. We need them to boost our confidence.

Thanks @ozzie75 :)

Hopefully - everything smooth sailing after this date. Cheers everyone!

Why Sumatec drop again? I was hoping it will go up.

Hope tomorrow reverse and start up again.

May I know what is happening on 27 November?

Everybody want to make money - lets all have a peaceful forum please.

KakiPatah - I agree with you. They should should stop cursing and using vulgar language. If want to share opinion do it in civilised manner. Now this forum not about Sumatec, it's personal and it's not good for the investors.

When fighting - BOTH SIDES ARE WRONG!

http://www.eia.gov/countries/cab.cfm?fips=mu

Oman is the largest oil and natural gas producer in the Middle East that is not a member of the Organization of the Petroleum Exporting Countries (OPEC).

Enhanced oil recovery techniques helped Oman's oil production rebound from a multi-year decline in the early 2000s.

According to the Oil & Gas Journal, Oman had 5.5 billion barrels of proved oil reserves as of January 2013. Oman's only export crude stream is the Oman blend, which is a medium-light and sour (high sulfur) crude. After declining for several years in the early 2000s, enhanced oil recovery (EOR) techniques, such as steam injection and miscible injection, have been the key driver of Oman's rebounding oil production since 2007.

http://subseaiq.com/data/Project.aspx?project_id=1782 - first discovery by Hibiscus in Oman in 30 years

http://www.globalshift.co.uk/oman.html

Very good article

Wow!! Oman got 5 billion reserves.

Hibiscus in block 50 got 1 billion reserves.


http://www.offshoreenergytoday.com/oman-invites-bids-for-oil-and-gas-exploration-blocks/

http://www.offshoreenergytoday.com/wp-content/uploads/2014/08/oman-oil-map.png


The government of the Sultanate of Oman has invited interested companies to bid for five oil and gas exploration blocks.

Of the blocks offered as part of the Oman Bid Round 2014 two are located offshore the coast of Oman, while three are onshore.

In a statement of the website of The Ministry of Oil & Gas, oil and gas companies experienced in upstream projects have been invited to take part in the upcoming bid rounds for the offshore Blocks 18, 59 and onshore blocks 43A, 54, 58 in the Sultanate of Oman.

Friday, October 31, 2014 has been set as the deadline for the submission of bids.

According to data found on the Ministry of Oil & Gas website, 33 exploration wells were drilled in the Sultanate in 2013.

The total reserves of oil and condensate in the Sultanate were estimated to be 5151 million barrels at the end of 2013, an increase of 3.5% over 2012, when the reserves were estimated at around 4974.3 million barrels.



Offshore Energy Today Staff, August 05, 2014

Tomorrow also got trading - still got another trading day my friends - after that we can goodbye for the week.

I buy I regret :(

http://www.thestar.com.my/Business/Business-News/2014/07/15/Sumatec-CFO-sells-entire-stake-Shares-and-warrants-extend-rally/?style=biz

PETALING JAYA: Sumatec Resources Bhd’s chief financial officer Roshidah Abdullah sold her entire 20 million shares in the company on July 9, making a gross gain of about RM6.16mil.

In a filing with Bursa Malaysia, the company said Roshidah had disposed of her entire 0.64% stake in Sumatec for 30.8 sen per share.

Yesterday, Sumatec’s shares and warrants jumped, extending their Friday rally, which came about after the company said it was proposing to buy Borneo Energy Oil and Gas Ltd for US$250mil (RM785.387mil).

Borneo Energy is a Kazakhstan oil and gas (O&G) outfit that has the rights for exploration and production in two fields in that country.

Sumatec shares hit an intra-day high of 42 sen yesterday, closing the day at 40.5 sen, an 8% increase, with 478 million shares being done. It was the highest close since Nov 14 last year.

Its warrants, Sumatec-WB and Sumatec-WA, meanwhile, jumped 14.75% and 17.54% to close at 35 sen and 33.5 sen, respectively. Sumatec’s shares and warrants were among the most active counters yesterday.

Sumatec also recently appointed Datuk Ahmad Johari Abdul Razak (the brother of Prime Minister Datuk Seri Najib Tun Razak) as an independent non-executive director. Ahmad Johari has a 1.92% direct interest in Sumatec.

The Practice Note 17 firm is currently involved in the development and production of gas for the Rakuschechnoye O&G field in Kazakhstan with Markmore Energy (Labuan) Ltd.

Markmore is the owner of the concession and holds the sub-surface user rights for the Rakuschechnoye field through its unit CaspiOilGas LLP. Businessman Tan Sri Halim Saad owns 99% of Markmore and is also Sumatec’s major shareholder.

It has been reported that Halim owns 24.9% of Sumatec.

I know Roshidah also sold all her shares already. She as CFO no longer hold any shares. So how can we trust her???

Happytrrading - Very true !!! Salesman is always nice - its the after sales we are after. Right now - big question mark on the after sales as we are bleeding and we are not getting the right answers. All going wrong.

Nobody giving right guidance.

4.1 million shares done at 29 cents and 4.6 million done at 29.5 cents.

Afternoon session more and more getting done at 29 cents. If someone know it is bad news, please let us know.

If QR bad - then all should know - the counter has been bleeding red for such a long time without recovering. Don't mislead others as this is serious money.

Please do not mislead others. if something is bad - let others know.

Please do not mislead others - this is serious money - there are more sellers than buyers and for the past week it has been going down. Something is wrong.

Can anyone really tell what is really wrong? Is the QR bad? It the investment bad? What is wrong that the counter keep going down and not going up?

Don't just say something that is not true when everyday it close red.

7 million shares want to sell at 29.5 cents. That is a lot of sellers isn't it?

How come so many sellers que at 29.5 cents? Where they come from? Suddenly so many sellers appear to sell at 29.5 cents.

Any bad news?

Why after exit PN17 the price of SUMATEC is worst than before?

Any idea? It was better priced before it exited PN17.

Hopefully price stabilize. Hope people do not spread false rumors and give false hopes also. The best is to provide the truth so we can all benefit.

All the best tomorrow!

Yes - maybe someone need to ask Hibiscus management what happen to KITAN oilfield? Kitan oilfield is producing field. Why no announcement.

http://announcements.bursamalaysia.com/edms/edmswebh.nsf/all/F75E4493B525BA7348257D21005D7525/$File/Hibiscus%20Petroleum_Annnouncement%20for%20Proposed%20Transactions.pdf

CHPL will acquire:

(a) 3DO’s 49.9% stake in the Britannia Rig (thus providing CHPL with 100% ownership of the
Britannia Rig (post-acquisition); and

(b) as part of the package, a further 5% interest in the VIC/P57 exploration permit from 3DO,
which is currently 50.1% owned by CHPL, thus increasing CHPL’s stake in VIC/P57 to
55.1% for a total purchase consideration of USD7.5 million.

HIREX receives an option to acquire a 20% interest in the VIC/P57 exploration permit. If
exercised, Hibiscus Petroleum’s interest will indirectly increase through its 41% equity interest
in HIREX and the resultant interest of the respective joint venture parties in VIC/P57 will be
as follows:

(a) CHPL from 50.1% to 55.1%;
(b) HIREX from 0% to 20.0%; and
(c) 3DO from 49.9% to 24.9%.



Upon exercise of the VIC/P57 Option, HIREX has 2 months from exercising its option to apply the
RVD technology to identify potential prospects for exploration drilling within VIC/P57.


CHPL will convert the outstanding debts owed by 3DO for VIC/L31 into additional equity interest in the VIC/L31 production licence. Thereafter, CHPL’s interest in VIC/L31 will increase from 50.1% to 56.17%, whilst 3DO’s interest will be reduced to 43.83%.


CHPL receives an option to acquire 3DO’s remaining interest in VIC/L31 based on fair market value.

WOW! WOW! WOW


http://announcements.bursamalaysia.com/edms/edmswebh.nsf/all/F75E4493B525BA7348257D21005D7525/$File/Hibiscus%20Petroleum_Executive%20Summary%20for%20Proposed%20Transactions.pdf

You guys better read this!!


http://www.bursamalaysia.com/market/listed-companies/company-announcements/1677297

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1796149

The way it breached 30 cents it is not a good sign. Why so fast it just broke a critical support?

Wish the owners will support.

Hopefully the oil price will stabilize tonight and wish for DOW to close green overnight. All the best everyone. Happy weekend and good luck!

Cockroach - do not wish for others misfortune, it will come back and hit you too. Must respect everybody.

Jack Bates (7) semi 1986/1997 5,400 30,000 JPDA ENI Sep-14 Oct-14 440,000 380,000

This is in the Transocean website - The Jack Bates has been drilling in Kitan since September - when is the announcement? Should be coming out?

http://www.deepwater.com/assets/Documents/October%202014%20Fleet%20Status%20Report%20(Pdf).pdf

Everything that goes down will come up. When is the news on the KITAN oil coming out? I think they announce last time they waiting for approval?

Now oil is at a low - I heard it will not go lower - lets hope so. Everything that goes down will come up. We just have to be patience.

Hope for the best. Good luck to all!!

http://www.oilandgaspress.com/wp/?p=22794

The End Of An Era: Is The US Petrodollar Under Threat?

Posted On October 31st, 2014 - 7:47 am | by Oil and gas press
Recent trade deals and high-level cooperation between Russia and China have set off alarm bells in the West as policymakers and oil and gas executives watch the balance of power in global energy markets shift to the East.

The reasons for the cozier relationship between the two giant powers are, of course, rooted in the Ukraine crisis and subsequent Western sanctions against Russia, combined with China’s need to secure long-term energy supplies. However, a consequence of closer economic ties between Russia and China could also mean the beginning of the end of dominance for the U.S. dollar, and that could have a profound impact on energy markets.

Reign of the USD

Before the 20th century, the value of money was tied to gold. Banks that lent money were constrained by the amount of their gold reserves. The Bretton Woods Agreement of 1944 established a system of exchange rates that allowed governments to sell their gold to the U.S. Treasury. But in 1971, U.S. President Richard Nixon took the country off the gold standard, which formally ended the linkage between the world’s major currencies and gold.

The U.S. dollar then went through a massive devaluation, and oil played a crucial role in propping it back up. Nixon negotiated a deal with Saudi Arabia whereby in exchange for arms and protection, the Saudis would denominate all future sales of oil in U.S. dollars. Other OPEC members agreed to similar deals, ensuring perpetual global demand for greenbacks. The dominance of the U.S. “petrodollar” continues to this day.

Russia and China Cozy Up

Recent news coming out of Russia, however, suggests that the era of U.S. dollar dominance could be coming to an end, due to increasing competition from the world’s second largest economy and primary consumer of commodities, China.

China and Russia have been furiously signing energy deals that indicate their mutual energy interests. The most obvious is the $456 billion gas deal that Russian state-owned Gazprom signed with China in May, but that was just the biggest in a string of energy agreements going back to 2009. That year, Russian oil giant Rosneft secured a $25 billion oil swap agreement with Beijing, and last year, Rosneft agreed to double oil supplies to China in a deal valued at $270 billion.

Since Western sanctions against Russia took hold in reaction to the Russian land grab in Crimea and the shooting down of a commercial airliner, Moscow has increasingly looked to its former Cold War rival as a key buyer of Russian crude — its most important export. Liam Halligan, a columnist for the Telegraph, says “the real danger” of closer Russian-Chinese ties is not a bust-up between China and the U.S., which could threaten crucial shipping routes for China-bound coal and LNG, but its impact on the U.S. dollar.

“If Russia’s ‘pivot to Asia’ results in Moscow and Beijing trading oil between them in a currency other than the dollar, that will represent a major change in how the global economy operates and a marked loss of power for the U.S. and its allies,” Halligan wrote in May. “With China now the world’s biggest oil importer and the U.S. increasingly stressing domestic production, the days of dollar-priced energy, and therefore dollar-dominance, look numbered.”

While no one is arguing that could happen anytime soon, considering the dollar remains the currency of choice for central banks, Halligan’s proposition is gathering strength. In June, China agreed with Brazil on a $29 billion currency swap in an effort to promote the Chinese yuan as a reserve currency, and earlier this month, the Chinese and Russian central banks signed an agreement on yuan-ruble swaps to double trade between the two countries. Analysts says the $150 billion deal, one of 38 accords inked in Moscow, is a way for Russia to move away from U.S. dollar-dominated settlements.

“Taken alone, these actions do not mean the end of the dollar as the leading global reserve currency,” Jim Rickards, portfolio manager at West Shore Group and partner at Tangent Capital Partners, told CNBC. “But taken in the context of many other actions around the world including Saudi Arabia’s frustration with U.S. foreign policy toward Iran, and China’s voracious appetite for gold, these actions are meaningful steps away from the dollar.”

Rise of the Yuan

It is no secret that Beijing has been looking to promote the yuan as an alternative reserve currency. Having that status would allow China cheap access to world capital markets and cheaper transaction costs on international trade, not to mention increased clout as an economic power commensurate with its rising proportion of world commerce.

However, the Chinese have a problem in their plans for the yuan. The government has not yet removed capital controls that would allow full convertibility, for fear of unleashin

http://www.oilandgaspress.com/wp/?p=22800

How Long Can The Shale Revolution Last?

Posted On October 31st, 2014 - 8:04 am | by Oil and gas press
A new study has cast serious doubt on whether the much-ballyhooed U.S. shale oil and gas revolution has long-term staying power.

The U.S. produced 8.5 million barrels of oil per day in July of this year — 60 percent more than just three years earlier. That is also the highest rate of production in three decades.
Put another way, since 2011, the U.S. has added 3 million barrels per day in additional capacity to global supplies. Had that volume not come online, oil prices would surely be much higher than they currently are.

That has “revolutionized” the energy industry and geopolitics, as scores of energy analysts have claimed. The Energy Information Administration (EIA) forecasts that U.S. oil production will hit 9.6 million barrels per day (bpd) in 2019, and gradually decline to 7.5 million bpd by 2040.

This would allow the U.S. to be one of the world’s top oil producers for an extended period of time. With such an achievement now at hand, many analysts are predicting an era of American dominance in geopolitics. For example, in an op-ed on Oct. 20, columnist Joe Nocera considered a “world without OPEC,” in which U.S. oil production soon kills off the oil cartel.

Or consider this rather triumphalist piece in Foreign Affairs from earlier this year, where two former National Security Council members who worked under President George W. Bush boasted that the recent surge in oil production “should help put to rest declinist thinking” and “sharpen the instruments of U.S. statecraft.” In the following issue, Ed Morse of Citibank went further. “Despite its doubters and haters, the shale revolution in oil and gas production is here to stay,” he declared.

But a new report throws cold water on the thinking that U.S. shale production will be around for the long haul. The Post Carbon Institute conducted an analysis of the top seven oil and top seven natural gas plays, which together account for 89 percent of current shale oil production and 88 percent of shale gas production.

The report found that both shale oil and shale gas production will peak before 2020. More importantly, the report’s author, David Hughes, says oil production will decline much more quickly than the EIA has predicted.

That’s largely because of high decline rates at shale wells across the country. Unlike conventional wells, which can produce relatively stable rates for a long period of time, shale oil and gas wells experience an initial burst of production in the first few years, followed by a precipitous decline thereafter.

Hughes estimates that the average shale oil well declines at a rate of between 60 and 91 percent over three years. Wells in the Bakken decline by 45 percent per year, which stands in stark contrast to the 5 percent annual decline for an average conventional well.

Or put another way, oil and gas companies will have to keep drilling at a feverish pace just to stand still. This means the industry is on a “drilling treadmill” that will be unsustainable over the long-term.

Predicting what oil production will be in 25 years is difficult, to say the least, but the Post Carbon report projects that oil production from the Bakken and Eagle Ford will be just one-tenth of the level that EIA is forecasting. The EIA predicts that the Bakken and the Eagle Ford will be producing a combined 1 million bpd in 2040. Hughes thinks it will be just a small fraction of that amount – a mere 73,000 bpd.

This is not the first time that David Hughes has taken aim at EIA data. In a December 2013 report, he skewered the high estimates for the potential of the Monterrey Shale in California, calling the EIA’s numbers “simplistic and highly overstated.” Several months later, the EIA was forced to back track on its figures, downgrading the recoverable oil estimates in the Monterrey by 96 percent.

Hughes says the implications of getting it wrong are “profound,” since so many companies are basing very large investments on incorrect projections. He says rosy estimates have cut into investment for renewables, while steering capital towards expensive oil and gas export terminals that should now be called into question.

An article in CleanTechnica points to the possibility of boom towns turning into “ghost towns” if the pace of drilling drops off. If David Hughes and The Post Carbon Institute are correct, there could be quite a few ghost towns popping up in the coming years as the shale revolution begins to fizzle.


Read more at http://www.oilandgaspress.com/wp/?p=22800#cdTSM7qKt3RgXAWw.99

http://www.oilandgaspress.com/wp/?p=22800

How Long Can The Shale Revolution Last?

Posted On October 31st, 2014 - 8:04 am | by Oil and gas press
A new study has cast serious doubt on whether the much-ballyhooed U.S. shale oil and gas revolution has long-term staying power.

The U.S. produced 8.5 million barrels of oil per day in July of this year — 60 percent more than just three years earlier. That is also the highest rate of production in three decades.
Put another way, since 2011, the U.S. has added 3 million barrels per day in additional capacity to global supplies. Had that volume not come online, oil prices would surely be much higher than they currently are.

That has “revolutionized” the energy industry and geopolitics, as scores of energy analysts have claimed. The Energy Information Administration (EIA) forecasts that U.S. oil production will hit 9.6 million barrels per day (bpd) in 2019, and gradually decline to 7.5 million bpd by 2040.

This would allow the U.S. to be one of the world’s top oil producers for an extended period of time. With such an achievement now at hand, many analysts are predicting an era of American dominance in geopolitics. For example, in an op-ed on Oct. 20, columnist Joe Nocera considered a “world without OPEC,” in which U.S. oil production soon kills off the oil cartel.

Or consider this rather triumphalist piece in Foreign Affairs from earlier this year, where two former National Security Council members who worked under President George W. Bush boasted that the recent surge in oil production “should help put to rest declinist thinking” and “sharpen the instruments of U.S. statecraft.” In the following issue, Ed Morse of Citibank went further. “Despite its doubters and haters, the shale revolution in oil and gas production is here to stay,” he declared.

But a new report throws cold water on the thinking that U.S. shale production will be around for the long haul. The Post Carbon Institute conducted an analysis of the top seven oil and top seven natural gas plays, which together account for 89 percent of current shale oil production and 88 percent of shale gas production.

The report found that both shale oil and shale gas production will peak before 2020. More importantly, the report’s author, David Hughes, says oil production will decline much more quickly than the EIA has predicted.

That’s largely because of high decline rates at shale wells across the country. Unlike conventional wells, which can produce relatively stable rates for a long period of time, shale oil and gas wells experience an initial burst of production in the first few years, followed by a precipitous decline thereafter.

Hughes estimates that the average shale oil well declines at a rate of between 60 and 91 percent over three years. Wells in the Bakken decline by 45 percent per year, which stands in stark contrast to the 5 percent annual decline for an average conventional well.

Or put another way, oil and gas companies will have to keep drilling at a feverish pace just to stand still. This means the industry is on a “drilling treadmill” that will be unsustainable over the long-term.

Predicting what oil production will be in 25 years is difficult, to say the least, but the Post Carbon report projects that oil production from the Bakken and Eagle Ford will be just one-tenth of the level that EIA is forecasting. The EIA predicts that the Bakken and the Eagle Ford will be producing a combined 1 million bpd in 2040. Hughes thinks it will be just a small fraction of that amount – a mere 73,000 bpd.

This is not the first time that David Hughes has taken aim at EIA data. In a December 2013 report, he skewered the high estimates for the potential of the Monterrey Shale in California, calling the EIA’s numbers “simplistic and highly overstated.” Several months later, the EIA was forced to back track on its figures, downgrading the recoverable oil estimates in the Monterrey by 96 percent.

Hughes says the implications of getting it wrong are “profound,” since so many companies are basing very large investments on incorrect projections. He says rosy estimates have cut into investment for renewables, while steering capital towards expensive oil and gas export terminals that should now be called into question.

An article in CleanTechnica points to the possibility of boom towns turning into “ghost towns” if the pace of drilling drops off. If David Hughes and The Post Carbon Institute are correct, there could be quite a few ghost towns popping up in the coming years as the shale revolution begins to fizzle.


Read more at http://www.oilandgaspress.com/wp/?p=22800#cdTSM7qKt3RgXAWw.99

http://www.investing.com/news/commodities-news/crude-oil-futures-tumble-on-saudi-price-signals-315301

Investing.com - Crude oil tumbled sharply on Tuesday, amid speculation Saudi Arabia lowered prices to buyers in the U.S.

Crude oil futures tumble on Saudi price signals Crude oil plumes after Saudi price cut
On the New York Mercantile Exchange, crude oil for delivery in December fell to a session low of $77.22 a barrel, a level not seen since October 2011.

Prices recovered to last trade at $77.51 a barrel during European morning hours, down $1.27, or 1.61%.

Elsewhere, on the ICE Futures Exchange in London, Brent for December delivery lost $1.33, or 1.57%, to hit $83.45 a barrel.

Saudi Arabia on Monday cut its selling price for oil to the U.S., suggesting that the kingdom is trying to compete with U.S. shale oil.

London-traded Brent prices have fallen nearly 27% since June, when it climbed near $116, while WTI futures are down almost 28% from a recent peak of $107.50 in June.

Concerns over weakening global demand combined with indications that the Organization of the Petroleum Exporting Countries will not cut output to support oil markets have weighed on prices in recent weeks.

Some market analysts believe that only a cut in production by the oil cartel will halt the decline in prices.

Oil ministers from the 12-member group are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target for early 2015.

Someone is collecting the mother - look at the bursa announcement - my guess is the same person is also collecting the warrant - look at the volume during the same time of collection. Cheers!

Good luck guys tomorrow- happy hunting. Cheers!

Everyday have announcement on purchase of shares from open market. Good sign.

Gents - someone is collecting everyday - read bursa announcement. Expect good news out soon. Cheers!!!!

KUALA LUMPUR, Malaysia – Sharjah’s government has extended Lime Petroleum subsidiary Zubara Petroleum’s concession agreement for the Sharjah Offshore block in the UAE.

Zubara, which owns 100% of the block, expects to issue a well management services contract by July, paving the way for drilling of an exploration well by 3Q 2015.

Additionally, the company expects to complete an environmental impact assessment and a site survey by next January.

This will be Lime’s second drilling program in the Middle East following its offshore Oman block 50 campaign, which finished in March.

Dr. Kenneth Pereira, managing director of Lime’s parent company Hibiscus Petroleum, said: “We have completed all the necessary geological studies and are excited about the prospects. Prior to the start of the drilling campaign, Lime expects to lower its equity interests in the well…and several parties have shown some interest.”

06/25/2014

Hibiscus Petroleum Bhd’s proposed deals with 3D Oil Ltd (3DO) is aimed at hastening the monetisation of the proven reserves of the West Seahorse (L31) field by late 2015.

This will, in the process, support Hibiscus’ own strategy to move from the exploration phase to development and production, and thus generate baseline income for the Hibiscus group.

The tight financial situation at 3DO has delayed the monetisation process of the field, initially planned for 2014.

The Head of Agreement (HoA) between 3DO, Hibiscus-owned units, Carnarvon Hibiscus Pty Ltd (CHPL), Althea Corp Ltd and Hirex Petroleum Sdn Bhd (41% owned by Hibiscus) offers options to the Hibiscus group of companies to raise its existing stake in 3DO’s exploration blocks VIC/P57 and production licence VIC/L31 offshore Australia in a month.

The HoA will bring Hirex into the joint venture (3DO and Hibiscus) with a 20% stake, while Hibiscus will raise its stake by 5% to 55.1% in the P57 field and acquire the rest of the interest in West Seahorse to 100%.

“If we exercise the options (of the HoA), it would give us complete control of L31’s development and 3DO will receive much needed cash, so it’s a win-win situation. In 30 days, the fair market value will be determined and then we can decide on the next course of action,” said Steve Dechant, COO of Hibiscus.

Hibiscus, via CHPL, will acquire 3DO’s 49.1% stake in the Britannia rig for RM24.5 million, making it a wholly owned asset of the group.

The rig purchase consideration would form part of the US$30 million (RM96.52 million) the two companies (3DO and Hibiscus) plan to spend on an exploration well in the first-half of 2015 on one of the prospects in P57, most likely the Sea Lion field, said Dechant.

“Our plan is to sell the rig to a contractor and then lease it back for field development. Our strategy is not to own assets like the Britannia, we did it to facilitate and expedite the project.

We have a preferred contractor in place for that,” said Dechant. The 30-year-old rig was acquired last year for US$17 million and is now in Turkey undergoing maintenance works and is being proposed for the Seahorse field. The Seahorse field, with an estimated eight million barrels recoverable, is expected to cost US$140 million in capital cost to bring to production, targeted at about 15,000 barrel a day, said Dechant.

3DO, in its current financial position, won’t be able to fund the development of L31 for another nine to 12 months, so the fields prospects depend on fair market value appraisal of the HoA. Hibiscus has proposed to raise some RM500 million from a fresh issue of convertible redeemable preference shares while it can collect about RM150 million from the exercise of its warrants by holders in July 2014.

The money will be useful to achieve its production goals which could extend to Block 50 in Oman, which Dechant said is commercially viable, without revealing the estimated recoverable reserves due to restrictions imposed by the Omanis for the moment.

“The success in Block 50 will allow us to potentially move into the development phase. We are now awaiting the Oman Ministry of Oil and Gas approval and partner approvals,” he said, adding that the group could potentially develop both Block 50 and L31 concurrently if needed.

That said, in Oman, work goes on. “We have our hands full with this huge block with multiple prospects in this block. If necessary approvals are in place, our goal is to have production by 2015,” he said.

If Hirex doesn’t take up the 20% stake portion in P57 under the HOA, Hibiscus and 3DO will have to come up with their respective portions. Hirex, a technology company, has a business model that aims to secure two to three assets by the end of 2014.

Apart from P57, Hibiscus via Lime Petroleum plc (35% owned) is planning one exploration well in PL708 field in Norway in the first-quarter (1Q) of 2015 but its stake in the field is small at 10%.

Lime also plans to drill one exploration well offshore Sharjah in the United Arab Emirates in 4Q of 2015, but may seek to farm out a deal for the field, said Dechant. The option to buy a brownfield asset remains but no prospects are on the table at present, said Dechant.

Hibiscus Petroleum: Buying Talisman Resources for RM59m. Hibiscus Petroleum is acquiring Talisman Resources Pty Ltd in a deal worth USD18m (RM59m) that also includes the latter’s 25% stake in the Kitan producing oilfield. The company said wholly owned subsidiary Timor Hibiscus Ltd had executed a share-sale agreement to acquire all the shares of Talisman Resources, a wholly owned subsidiary of Toronto Stock Exchange and New York Exchange-listed Talisman Energy Inc. “Under the deal, which was executed on June 23, Hibiscus Petroleum will acquire Talisman’s stake of the oilfield with an effective date of Jan 1, 2014 with all existing assets and liabilities, as well as absorb the risk of well projects to be executed post-agreement, upon the completion of the transaction.” (StarBiz)

Oil and Gas making a comeback! Cheers!

http://klse.i3investor.com/blogs/valueinvestorresearchklse/52348.jsp

Hibiscus Petroleum Bhd has forecast a gain in net present value (NPV) of US$65m (RM210m) over five years from mid-2015, if its 2015 production plan for its West Seahorse Oil Field (VIC L31) in Australia goes well. And if the group is also able to discover oil in the adjacent Sea Lion Field (within VIC P57 concession area), estimated to have 11m barrels of oil, the gain from this field will be more than US$65m, said Hibiscus CFO Joyce Vasudevan. (Financial Daily)

Source: CIMB Daybreak - 19 May 2014

http://klse.i3investor.com/blogs/valueinvestorresearchklse/52348.jsp