No commercial hydrocarbons volumes in Sea Lion-1 exploration

KUALA LUMPUR: Hibiscus Petroleum Bhd yesterday announced that there were no commercial volumes of hydrocarbons encountered in the Sea Lion-1 exploration well in Australia.

In a filing to Bursa Malaysia here yesterday, Hibiscus Petroleum said its whollyowned unit, Carnarvon Hibiscus Pty Ltd (CHPL), advised that wireline evaluation and sampling of formation fluids over the six zones of interest identified on preliminary Sea Lion-1 data had been completed.

“Forward operations are to plug and abandon the Sea Lion-1 well and to de-mobilise the West Telesto drilling rig from the site,” it said.

Hibiscus Petroleum Managing Director, Dr Kenneth Pereira, said the company’s recent acquisition of Hydra Energy and their 2P (proven and probable) reserves has reduced the impact of the unsuccessful Sea Lion well.

“With the addition of the Hydra Energy reserves coupled with West Seahorse, our Australian assets will triple to 23–25 million barrels of 2P/2C (contingent) reserves/ resources and will support the development and commercialisation of our Australian assets,” he said.

In a separate filing, Hibiscus Petroleum said it and Hydra Energy were supportive of this transaction and were working together to complete it by the first quarter of next year.

“In addition to the equity transaction, Hydra Energy management, Global Natural Resource Investments and Hibiscus Petroleum management are in advanced discussions on a non-equity based US$20 million (US$1=RM4.42) financing facility to underpin the combined companies capital requirements. — Bernama