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Hibiscus Petroleum reports increased production from North Sabah fields

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Oilfield Technology,


Hibiscus Petroleum Berhad has reported that average gross oil production from its North Sabah asset, offshore Malaysia, improved by approximately 20% compared to the previous financial quarter.

The 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 UK.

With the current and future enhancement projects across both North Sabah and Anasuria assets, together with potential production from existing developments or new acquisitions, the company aims to achieve its 2021 Mission of 20 000 barrels bpd of oil production.

For its 2Q FY2020 results, the company announced revenue of RM271.8 million and a PAT of RM51.2 million, from the sale of 921 156 bbl of oil. EBITDA for the period was RM142.3 million with a strong EBITDA margin of 52.4%. Barring unforeseen circumstances, the company remains on track to deliver between 3.3 to 3.5 million bbl of oil in FY2020.

The company also reported an unrestricted cash balance of RM87.2 million and was debt-free as of 31 December 2019.

Commenting on the outlook for the company, Managing Director, Dr Kenneth Pereira, said: “The increased production from our North Sabah asset is testament to work the Group has put in together with our JV partner Petronas Carigali, and keeps us on track towards achieving our 2021 Mission. Further plans are being finalised to drill additional wells in North Sabah as part of our CY2020 production enhancement projects. We also continue to position ourselves for high-quality acquisitions in our areas of geographic focus and look forward to the potential growth they may bring.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/27022020/hibiscus-petroleum-reports-increased-production-from-north-sabah-fields/

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