Hibiscus Petroleum has struck a deal to buy Shell’s 50% stake in the North Sabah Enhanced Oil Recovery project, the Malaysian player announced on Tuesday.

Hibiscus to acquire Hydra

Australia

CANBERRA, November 11, 2015 – Malaysian operator Hibiscus Petroleum has reached a deal to acquire Hydra Energy, an Australian privately owned oil and gas company.

The deal, for which Hibiscus has signed a binding term sheet to purchase 100 percent of Hydra’s outstanding shares, will see seven operated petroleum titles in Western Australia’s offshore Carnarvon Basin – containing four discoveries – handed over to the company, adding 15 million-17 million barrels to its proved and probable reserves.

Hibiscus currently has booked reserves of 8 million barrels at its West Seahorse discovery off the Australian state of Victoria.
The company will satisfy the acquisition through the issue of new shares at a price to be established once a “fair market price” for Hydra is established. The deal is set for completion in the first quarter of next year.

The majority of shares in Hydra are currently held by funds advised by Global Natural Resource Investments (97 percent), with the remaining share held by the company’s management team (3 percent).

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