Hibiscus said in a statement its 13% stake in 3D Oil cost A$2mil (RM6.6mil).
Meanwhile, via Carnarvon Hibiscus Pty Ltd, a wholly owned subsidiary of Ocenia, Hibiscus has entered into a conditional farm-in agreement with 3D Oil.
The deal was for a direct 50.1% stake in the developing asset of VIC/P57 for A$13.5mil (RM44.4mil) and an additional investment of A$13.5mil (RM44.4mil) to work on the asset, it said.
Within the permit of the VIC/P57 exploration licence is the West Seahorse Field, which is a proven field containing at least 9.2 million barrels, and two exploration prospects – Sea Lion and Felix.
This is part of Hibiscus’ portfolio-balancing strategy where it is moving into development assets with proven hydrocarbon resources. Hibiscus shall also be the exploration and production operator for this asset.
Global petroleum consultancy company Gaffney, Cline and Associates said the West Seahorse field had at least 50% probability of containing a minimum 9.2 million barrels. The first production is expected by mid 2014.
“The concession expires in 2016. However, if Hibiscus goes into production, the concession will be ongoing for another 20 years.
“The first thing we will do is to get the production licence,” said Hibiscus Petroleum managing director Dr Kenneth Pereira.
3D Oil is a Melbourne-based exploration and development company that had acquired a 100% interest in VIC/P57 in April 2004. The asset is located in the Gippsland Basin.
The RM95.5mil investment will be funded via internal funds and Hibiscus Petroleum’s private placement of convertible redeemable preference shares announced on Aug 2.