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Corporate Profile

Hibiscus Petroleum Berhad (Hibiscus Petroleum or the Company) is Malaysia's first listed independent oil and gas exploration and production company. The Company was incorporated as a private limited company, Hibiscus Petroleum Sdn Bhd, on 5 December 2007, under the Companies Act, 1965. On 20 December 2010, it assumed its current name upon conversion into a public company. Hibiscus Petroleum was listed on the Main Market of Bursa Malaysia Securities Berhad on 25 July 2011 as the first Special Purpose Acquisition Company (SPAC) in South-East Asia. Following the completion of the acquisition of a 35% stake in Lime Petroleum Plc (Lime) in April 2012, Hibiscus Petroleum is now a full-fledged oil and gas exploration and production company.

Hibiscus Petroleum is principally an investment holding company focusing on the development of small and medium-sized oil and gas fields in the Middle East, Norway, South Asia, East Asia and Oceania regions.

Board of Directors

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Dr Kenneth Gerard PereiraManaging Director

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Dato’ Roushan ArumugamIndependentNon-Executive Director

Sara Murtadha Jaffar SulaimanIndependentNon-Executive Director

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Zainul Rahim bin Mohd Zain, a Malaysian aged 62, was appointed to the Board on 4 December 2010. He is a member of the Audit and Risk Management, Nominating and Remuneration Committees. Zainul graduated with a Bachelor of Engineering, majoring in Mechanical Engineering from the University of Western Australia, Australia.

Zainul began his career at Shell Malaysia Exploration and Production (SM-EP) in 1978 as a Wellsite Petroleum Engineer. He held various positions in drilling engineering, petroleum engineering, and information management & technology in SM-EP and during his two assignments in the Netherlands. He was General Manager of SM-EP’s Business Services (1997), Technical Services (1999) and the Sarawak Business Unit (2000), before being appointed as Deputy Chairman and Executive Director of Shell Malaysia in December 2001. In July 2003, he double-hatted as Shell Asia Pacific Region’s Transition Director based in Singapore. In November 2005, he was appointed to the position of Chairman of Shell companies in Egypt and Managing Director of Shell Egypt N.V., before retiring from the Shell Group on 30 June 2008.

During his tenure as Deputy Chairman of Shell Malaysia, he sat on the boards of 12 companies, including Shell Malaysia Ltd, Shell MDS Sdn Bhd, Shell Trading Sdn Bhd, Sarawak Shell Bhd, Sabah Shell Petroleum Company Ltd and CS Mutiara Sdn Bhd. He was also Chairman, Director and member of various NGOs, including the Society of Petroleum Engineers AsiaPac, Business Council for Sustainable Development Malaysia, Petroleum Industry of Malaysia Mutual Aid Group and Malaysian International Chamber of Commerce and Industry. While in Egypt, he chaired Shell Egypt’s Country Coordination Team and Shell Express CNG, and sat on the boards of Shell Egypt N.V., Shell Egypt Deepwater B.V. and Bapetco.

Zainul sat on the Supervisory Committee of Sime Darby’s Energy & Utilities Division for two years until 2010 and on the board of Petronas Carigali Sdn Bhd from 2010 to 2014. He currently sits on the boards of UKM Holdings Sdn Bhd, Bank Pembangunan Malaysia Bhd, Camco Clean Energy Plc, Cenergi SEA Sdn Bhd and the Malaysian Dutch Business Council.

Dr Kenneth Gerard PereiraManaging Director

Dr Kenneth Gerard Pereira, a Malaysian aged 57, has been the Managing Director of Hibiscus Petroleum since 13 September 2010. He holds a Bachelor of Science (Honours) degree in Engineering from the University of Bath, United Kingdom, a Masters in Business Administration from Cranfield University, United Kingdom and a Doctorate in Business Administration from the University of South Australia, Australia. His doctorate research topic was entitled “Start-up, Survival and Growth Strategic Actions of Initially Small Oil and Gas Exploration and Production Companies”.

Dr Kenneth has 27 years’ experience in the oil and gas industry, both in the services and exploration and production sectors. He began his career with Schlumberger Overseas S.A. in 1983 as a Field Service Engineer working in Brunei, Thailand, France, Libya, Italy, Norway and Tunisia. In 1990, he joined the Sapura Group, overseeing the service of telecommunication products and later, moved to the Group Corporate Planning Department.

In 1997, he was appointed as Vice President of Energy Sector Projects and initiated the building of the oil and gas services business of the company under the Sapura Energy Sendirian Berhad banner. Between 1997 and 2001, several service based businesses in the oil and gas value chain were grown organically or acquired and by 2001, the annual revenue of the oil and gas service business of the Sapura Group was in excess of RM100 million. In 2003, the Sapura Group successfully acquired Crest Petroleum Berhad and he became the Chief Operating Officer (COO) of SapuraCrest Petroleum Berhad (now part of SapuraKencana Petroleum Berhad Group), an oil and gas services company listed on the Main Market of Bursa Malaysia.

In 2009, Dr Kenneth became Managing Director of Interlink Petroleum Ltd, an oil and gas exploration and production company listed on the Mumbai Stock Exchange (2009 to 2011). In 2009, he was appointed to the board of STP Energy Pte Ltd, a privately held Singaporean company with offshore oil and gas exploration interests in New Zealand.

Dr Kenneth holds directorships in all of Hibiscus Petroleum’s subsidiaries and other various private companies.

Dr Rabi Narayan BastiaNon-IndependentNon-Executive Director

Dr Rabi Narayan Bastia, an Indian national, aged 54, was appointed to the Board on 15 September 2010. He is a member of the Company's Audit and Risk Management Committee

Dr Rabi holds a Bachelor of Science (1st Class Honours) degree in Applied Geology from the Indian Institute of Technology, Kharagpur, India; a Bachelor of Science (1st Class Honours) degree in Petroleum Exploration & Reservoir Management from the Norwegian Technological University, Norway; a PhD in Petroleum/Structural Geology from the Indian Institute of Technology, Kharagpur, India and a Doctor of Science degree in Petroleum Geology from Indian School of Mines, Dhanbad, (examined by Alberta University, Canada and Oklahoma University in the USA).

Dr Rabi commenced work as a geoscientist with the Oil and Natural Gas Corporation (ONGC) in India and has worked in different capacities and at various locations during his 16 years with ONGC. In 1996, he started the E&P business in Reliance Industries Limited, a member of the Reliance Group, India's largest private sector enterprise, and his last position was as the Head of the Exploration Management Team for Reliance Industries Limited.

The highlights of his career include the gas discovery of the Krishna-Godavari basin in 2002, the Mahanadi Basin gas discovery in North East Coast of India in 2003, and oil and gas discovery in the deep waters of the Cauvery basin in India in 2007. After heading the exploration group of Reliance for more than 16 years, he has currently taken up some very distinguished and challenging international and domestic assignments. He is the global head of exploration in Lime Petroleum Plc. He holds a Director position in Oil Field Instrumentation Pvt Ltd, India, and is the President (E&P) in OilMax Energy Pvt Ltd, India. Recently, he has taken up an Advisory Board position in Trace Atlantic Oil, Switzerland. Dr Rabi is a director of Synergy Oil & Gas Consultancy Private Limited, a private Indian company. He is also a member of numerous professional institutions such as the American Association of Petroleum Geologists, Society of Exploration Geophysicists, International Geological Congress, Society of Petroleum Engineers, Society of Geoscientists and Allied Technologist, Indian Geological Congress, Society of Petroleum Geophysicists and the Association of Indian Petroleum Geologists.

Dr Rabi was conferred the title of "Padmashree" by the Government of India in 2007, a title awarded by the Government of India to Indian citizens to recognise their distinguished contribution in various spheres of activity. Dr Rabi was awarded the Leadership and Excellence Award in E&P by Oceantex in 2010, the Infraline Service to Nation Award in Energy Excellence in 2007, the Ruchi Bharat Gaurav Samman by the state of Orissa, India in 2007, the Gold Medal during the AEG Conference in 2006, the National Mineral Award for significant contribution in the field of hydrocarbon exploration from the Geological Society of India, Bangalore in 2003 and the young Scientist Award from the Indian National Science Academy in 1990 for best scientific paper. He was awarded the Top 100 Educators by IBC, Cambridge, United Kingdom in 2009 and conferred the Who's Who in the World by American Continental Research in 2008.

Datuk Zainol Izzet bin Mohamed IshakSenior IndependentNon-Executive Director

Datuk Zainol Izzet bin Mohamed Ishak, a Malaysian aged 54, was appointed to the Board on 13 September 2010 and was appointed as Senior Independent Director on 12 February 2013. He is also Chairman of the Company’s Nominating Committee as well as a member of the Audit and Risk Management and Remuneration Committees.

Datuk Izzet holds a Bachelor of Arts in Actuarial Studies from Macquarie University, Sydney and a Masters in Business Administration from Cranfield University, United Kingdom. In his early career, Datuk Izzet served in several local and international companies including American Express, Seccolor (M) Industries, Kassim Chan & Co and Hymans Robertson & Co, Consulting Actuaries, London.

Datuk Izzet joined the Sapura Group as General Manager of Corporate Planning in 1992. He was part of the team to establish Sapura Digital Sdn Bhd, one of the pioneer operators of digital cellular operators in the country. In 1994, he became the Chief Executive Officer (CEO) of Sapura Digital Sdn Bhd and was subsequently appointed to lead Sapura Energy Group in 1997. He was appointed CEO of SapuraCrest Petroleum Berhad, (now part of SapuraKencana Petroleum Berhad Group) in July 2003 pursuant to the acquisition of Crest Petroleum Berhad by Sapura Technology Bhd from Renong Berhad.

Datuk Izzet is currently the Managing Director of Perisai Petroleum Teknologi Bhd, a company listed on the Main Market of Bursa Malaysia. He also holds directorships in various private companies.

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Datin Sunita Mei-Lin Rajakumar, a Malaysian aged 47, was appointed to the Board on 14 December 2010 as a Non-Executive Independent Director. She is also Chairperson of the Company’s Audit and Risk Management Committee as well as a member of the Nominating and Remuneration Committees.

Datin Sunita is also the Chairperson of Caring Pharmacy Group Berhad and Chair of its Audit Committee as a Non-Executive Independent Director

She is a Non-Executive Independent Director at Hai-O Enterprise Berhad and Chair of its Audit Committee.

Presently, Datin Sunita serves as a trustee of the following charity foundations: Yayasan Seni, Yayasan myNadi, Hai-O Foundation and Yayasan Usman Awang.

Datin Sunita is Director and owner of Artisan Encipta, a position that she has held since 2002, an organisation which provides business consulting services as well as advise on monitoring and improving national innovation ecosystems. Through Artisan Encipta, she was appointed an Independent Consultant for the King Abdul Aziz City for Science and Technology, based in Riyadh, Kingdom of Saudi Arabia. Recently, she also advised a prominent philanthropist on the impact assessment and governance issues arising from his charitable activities.

Since 2005, she is also Director and owner of Surprise Voice Sdn Bhd, which was the Executive Producer of Malaysia’s first opera which premiered in March 2006 and is now Festival Director of the first Kuala Lumpur International Arts Festival (DiverseCity 2015). Datin Sunita graduated with a Bachelor of Law (Honours) from the University of Bristol, UK. She qualified as a Member of the Institute of Chartered Accountants (England & Wales) in 1994. Datin Sunita commenced work as an Assistant Manager at Ernst & Young (London) in 1990 under their Audit and Insolvency Divisions. In 1994, she joined RHB Sakura Merchant Bankers Berhad’s Corporate Finance Department.

Datin Sunita became a Consultant for MIMOS Berhad (MIMOS) in 2000 where she advised MIMOS on the structuring of a multi-million dollar venture capital fund focused on foreign technology-related portfolio companies and the documentation required for the establishment of the fund. When the Encipta Limited venture capital fund was established in 2002, as a wholly owned subsidiary of MIMOS, her company, Artisan Encipta Ltd (Artisan Encipta) was mandated to independently manage the venture fund for MIMOS until 2008.

Dato’ Roushan ArumugamIndependentNon-Executive Director

Dato’ Roushan Arumugam, a Malaysian aged 43, was appointed to the Board on 25 July 2011. He is also Chairman of the Company’s Remuneration Committee as well as a member of the Nominating Committee.

Dato’ Roushan holds a Masters in English Language and Literature from St. Catherine’s College, Oxford University, United Kingdom, a Masters in Business Administration (MBA) from Imperial College Business School, Imperial College, University of London and a Masters in Law from the University of Bristol, United Kingdom.

Dato’ Roushan commenced work in 1995 as a Consultant at Price Waterhouse, London. In 1997, he joined Caspian Securities Limited as an Analyst in the Emerging Markets Equity Research Department. After completing an MBA, Dato’ Roushan joined Deutsche Bank A.G. London in 1999 as an Associate with its Investment Banking Division. In 2001, he moved to Malaysia to take up the position of Manager in Debt Capital Markets at Nomura.

Since September 2005, Dato’ Roushan has worked as an independent Investment Consultant. He is Managing Director of Littleton Holdings Pte Ltd. Currently, Dato’ Roushan serves as a board member of South Pickenham Estate Company Limited, Pneumacare Limited and Sri Inderajaya Holdings Sdn Bhd amongst other private companies. He is also a Domus Fellow of St. Catherine’s College, University of Oxford and a Trustee of the East West Trust at St. Catherine’s College.

Tay Chin KwangIndependentNon-Executive Director

Tay Chin Kwang, a Singaporean aged 48, was appointed to the Board on 14 June 2012. He is a member of the Company’s Audit and Risk Management Committee.

Chin Kwang graduated with a Bachelor of Accountancy from the National University of Singapore. He is a Certified Public Accountant and is a fellow member of the Institute of Singapore Chartered Accountants.

Chin Kwang is an advisor overseeing strategic partnerships and joint ventures with Ezra Holdings Limited, a leading offshore contractor and provider of integrated offshore solutions for the oil and gas industry, listed on the Singapore Exchange. Prior to this, he was Ezra Holdings Limited’s Group Finance Director and Executive Director. He is also a director of various companies in Singapore, Thailand, Norway and Nigeria.

Chin Kwang started his career with Ernst & Young in Singapore and currently has over 24 years of experience in various accounting, finance management and business advisory functions across a broad spectrum of industries.

Sara Murtadha Jaffar SulaimanIndependentNon-Executive Director

Sara Murtadha Jaffar Sulaiman, an Omani, aged 37, was appointed to the Board on 27 August 2014.

Sara graduated with a BA in Economics from Yale University in 1999 and subsequently with an MPhil in Economics from the University of Cambridge in 2000. She is a member of the Chartered Institute of Management Accountants.

Sara started her career in 2000 working for Petroleum Development Oman in Muscat and subsequently Shell Chemicals in the United Kingdom in a variety of finance and planning roles, where she completed her accountancy training. In 2006 she joined KPMG’s Energy and Natural Resource corporate finance team in London where she was involved in a number of project finance and merger and acquisition (M&A) transactions in the oil and gas, renewables and power markets. In 2008, Sara joined Simmons and Company International, a specialist energy investment bank, where she advised on a number of M&A transactions within oilfield services.

Sara is currently an Investment Director at Arle Capital Partners, an energy focused, London based private equity firm, which she joined in 2011.

Board of Directors

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Dr Kenneth Gerard PereiraManaging Director

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Dato’ Roushan ArumugamIndependentNon-Executive Director

Sara Murtadha Jaffar SulaimanIndependentNon-Executive Director

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Zainul Rahim bin Mohd Zain, a Malaysian aged 62, was appointed to the Board on 4 December 2010. He is a member of the Audit and Risk Management, Nominating and Remuneration Committees. Zainul graduated with a Bachelor of Engineering, majoring in Mechanical Engineering from the University of Western Australia, Australia.

Zainul began his career at Shell Malaysia Exploration and Production (SM-EP) in 1978 as a Wellsite Petroleum Engineer. He held various positions in drilling engineering, petroleum engineering, and information management & technology in SM-EP and during his two assignments in the Netherlands. He was General Manager of SM-EP’s Business Services (1997), Technical Services (1999) and the Sarawak Business Unit (2000), before being appointed as Deputy Chairman and Executive Director of Shell Malaysia in December 2001. In July 2003, he double-hatted as Shell Asia Pacific Region’s Transition Director based in Singapore. In November 2005, he was appointed to the position of Chairman of Shell companies in Egypt and Managing Director of Shell Egypt N.V., before retiring from the Shell Group on 30 June 2008.

During his tenure as Deputy Chairman of Shell Malaysia, he sat on the boards of 12 companies, including Shell Malaysia Ltd, Shell MDS Sdn Bhd, Shell Trading Sdn Bhd, Sarawak Shell Bhd, Sabah Shell Petroleum Company Ltd and CS Mutiara Sdn Bhd. He was also Chairman, Director and member of various NGOs, including the Society of Petroleum Engineers AsiaPac, Business Council for Sustainable Development Malaysia, Petroleum Industry of Malaysia Mutual Aid Group and Malaysian International Chamber of Commerce and Industry. While in Egypt, he chaired Shell Egypt’s Country Coordination Team and Shell Express CNG, and sat on the boards of Shell Egypt N.V., Shell Egypt Deepwater B.V. and Bapetco.

Zainul sat on the Supervisory Committee of Sime Darby’s Energy & Utilities Division for two years until 2010 and on the board of Petronas Carigali Sdn Bhd from 2010 to 2014. He currently sits on the boards of UKM Holdings Sdn Bhd, Bank Pembangunan Malaysia Bhd, Camco Clean Energy Plc, Cenergi SEA Sdn Bhd and the Malaysian Dutch Business Council.

Dr Kenneth Gerard PereiraManaging Director

Dr Kenneth Gerard Pereira, a Malaysian aged 57, has been the Managing Director of Hibiscus Petroleum since 13 September 2010. He holds a Bachelor of Science (Honours) degree in Engineering from the University of Bath, United Kingdom, a Masters in Business Administration from Cranfield University, United Kingdom and a Doctorate in Business Administration from the University of South Australia, Australia. His doctorate research topic was entitled “Start-up, Survival and Growth Strategic Actions of Initially Small Oil and Gas Exploration and Production Companies”.

Dr Kenneth has 27 years’ experience in the oil and gas industry, both in the services and exploration and production sectors. He began his career with Schlumberger Overseas S.A. in 1983 as a Field Service Engineer working in Brunei, Thailand, France, Libya, Italy, Norway and Tunisia. In 1990, he joined the Sapura Group, overseeing the service of telecommunication products and later, moved to the Group Corporate Planning Department.

In 1997, he was appointed as Vice President of Energy Sector Projects and initiated the building of the oil and gas services business of the company under the Sapura Energy Sendirian Berhad banner. Between 1997 and 2001, several service based businesses in the oil and gas value chain were grown organically or acquired and by 2001, the annual revenue of the oil and gas service business of the Sapura Group was in excess of RM100 million. In 2003, the Sapura Group successfully acquired Crest Petroleum Berhad and he became the Chief Operating Officer (COO) of SapuraCrest Petroleum Berhad (now part of SapuraKencana Petroleum Berhad Group), an oil and gas services company listed on the Main Market of Bursa Malaysia.

In 2009, Dr Kenneth became Managing Director of Interlink Petroleum Ltd, an oil and gas exploration and production company listed on the Mumbai Stock Exchange (2009 to 2011). In 2009, he was appointed to the board of STP Energy Pte Ltd, a privately held Singaporean company with offshore oil and gas exploration interests in New Zealand.

Dr Kenneth holds directorships in all of Hibiscus Petroleum’s subsidiaries and other various private companies.

Dr Rabi Narayan BastiaNon-IndependentNon-Executive Director

Dr Rabi Narayan Bastia, an Indian national, aged 54, was appointed to the Board on 15 September 2010. He is a member of the Company's Audit and Risk Management Committee

Dr Rabi holds a Bachelor of Science (1st Class Honours) degree in Applied Geology from the Indian Institute of Technology, Kharagpur, India; a Bachelor of Science (1st Class Honours) degree in Petroleum Exploration & Reservoir Management from the Norwegian Technological University, Norway; a PhD in Petroleum/Structural Geology from the Indian Institute of Technology, Kharagpur, India and a Doctor of Science degree in Petroleum Geology from Indian School of Mines, Dhanbad, (examined by Alberta University, Canada and Oklahoma University in the USA).

Dr Rabi commenced work as a geoscientist with the Oil and Natural Gas Corporation (ONGC) in India and has worked in different capacities and at various locations during his 16 years with ONGC. In 1996, he started the E&P business in Reliance Industries Limited, a member of the Reliance Group, India's largest private sector enterprise, and his last position was as the Head of the Exploration Management Team for Reliance Industries Limited.

The highlights of his career include the gas discovery of the Krishna-Godavari basin in 2002, the Mahanadi Basin gas discovery in North East Coast of India in 2003, and oil and gas discovery in the deep waters of the Cauvery basin in India in 2007. After heading the exploration group of Reliance for more than 16 years, he has currently taken up some very distinguished and challenging international and domestic assignments. He is the global head of exploration in Lime Petroleum Plc. He holds a Director position in Oil Field Instrumentation Pvt Ltd, India, and is the President (E&P) in OilMax Energy Pvt Ltd, India. Recently, he has taken up an Advisory Board position in Trace Atlantic Oil, Switzerland. Dr Rabi is a director of Synergy Oil & Gas Consultancy Private Limited, a private Indian company. He is also a member of numerous professional institutions such as the American Association of Petroleum Geologists, Society of Exploration Geophysicists, International Geological Congress, Society of Petroleum Engineers, Society of Geoscientists and Allied Technologist, Indian Geological Congress, Society of Petroleum Geophysicists and the Association of Indian Petroleum Geologists.

Dr Rabi was conferred the title of "Padmashree" by the Government of India in 2007, a title awarded by the Government of India to Indian citizens to recognise their distinguished contribution in various spheres of activity. Dr Rabi was awarded the Leadership and Excellence Award in E&P by Oceantex in 2010, the Infraline Service to Nation Award in Energy Excellence in 2007, the Ruchi Bharat Gaurav Samman by the state of Orissa, India in 2007, the Gold Medal during the AEG Conference in 2006, the National Mineral Award for significant contribution in the field of hydrocarbon exploration from the Geological Society of India, Bangalore in 2003 and the young Scientist Award from the Indian National Science Academy in 1990 for best scientific paper. He was awarded the Top 100 Educators by IBC, Cambridge, United Kingdom in 2009 and conferred the Who's Who in the World by American Continental Research in 2008.

Datuk Zainol Izzet bin Mohamed IshakSenior IndependentNon-Executive Director

Datuk Zainol Izzet bin Mohamed Ishak, a Malaysian aged 54, was appointed to the Board on 13 September 2010 and was appointed as Senior Independent Director on 12 February 2013. He is also Chairman of the Company’s Nominating Committee as well as a member of the Audit and Risk Management and Remuneration Committees.

Datuk Izzet holds a Bachelor of Arts in Actuarial Studies from Macquarie University, Sydney and a Masters in Business Administration from Cranfield University, United Kingdom. In his early career, Datuk Izzet served in several local and international companies including American Express, Seccolor (M) Industries, Kassim Chan & Co and Hymans Robertson & Co, Consulting Actuaries, London.

Datuk Izzet joined the Sapura Group as General Manager of Corporate Planning in 1992. He was part of the team to establish Sapura Digital Sdn Bhd, one of the pioneer operators of digital cellular operators in the country. In 1994, he became the Chief Executive Officer (CEO) of Sapura Digital Sdn Bhd and was subsequently appointed to lead Sapura Energy Group in 1997. He was appointed CEO of SapuraCrest Petroleum Berhad, (now part of SapuraKencana Petroleum Berhad Group) in July 2003 pursuant to the acquisition of Crest Petroleum Berhad by Sapura Technology Bhd from Renong Berhad.

Datuk Izzet is currently the Managing Director of Perisai Petroleum Teknologi Bhd, a company listed on the Main Market of Bursa Malaysia. He also holds directorships in various private companies.

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Datin Sunita Mei-Lin Rajakumar, a Malaysian aged 47, was appointed to the Board on 14 December 2010 as a Non-Executive Independent Director. She is also Chairperson of the Company’s Audit and Risk Management Committee as well as a member of the Nominating and Remuneration Committees.

Datin Sunita is also the Chairperson of Caring Pharmacy Group Berhad and Chair of its Audit Committee as a Non-Executive Independent Director

She is a Non-Executive Independent Director at Hai-O Enterprise Berhad and Chair of its Audit Committee.

Presently, Datin Sunita serves as a trustee of the following charity foundations: Yayasan Seni, Yayasan myNadi, Hai-O Foundation and Yayasan Usman Awang.

Datin Sunita is Director and owner of Artisan Encipta, a position that she has held since 2002, an organisation which provides business consulting services as well as advise on monitoring and improving national innovation ecosystems. Through Artisan Encipta, she was appointed an Independent Consultant for the King Abdul Aziz City for Science and Technology, based in Riyadh, Kingdom of Saudi Arabia. Recently, she also advised a prominent philanthropist on the impact assessment and governance issues arising from his charitable activities.

Since 2005, she is also Director and owner of Surprise Voice Sdn Bhd, which was the Executive Producer of Malaysia’s first opera which premiered in March 2006 and is now Festival Director of the first Kuala Lumpur International Arts Festival (DiverseCity 2015). Datin Sunita graduated with a Bachelor of Law (Honours) from the University of Bristol, UK. She qualified as a Member of the Institute of Chartered Accountants (England & Wales) in 1994. Datin Sunita commenced work as an Assistant Manager at Ernst & Young (London) in 1990 under their Audit and Insolvency Divisions. In 1994, she joined RHB Sakura Merchant Bankers Berhad’s Corporate Finance Department.

Datin Sunita became a Consultant for MIMOS Berhad (MIMOS) in 2000 where she advised MIMOS on the structuring of a multi-million dollar venture capital fund focused on foreign technology-related portfolio companies and the documentation required for the establishment of the fund. When the Encipta Limited venture capital fund was established in 2002, as a wholly owned subsidiary of MIMOS, her company, Artisan Encipta Ltd (Artisan Encipta) was mandated to independently manage the venture fund for MIMOS until 2008.

Dato’ Roushan ArumugamIndependentNon-Executive Director

Dato’ Roushan Arumugam, a Malaysian aged 43, was appointed to the Board on 25 July 2011. He is also Chairman of the Company’s Remuneration Committee as well as a member of the Nominating Committee.

Dato’ Roushan holds a Masters in English Language and Literature from St. Catherine’s College, Oxford University, United Kingdom, a Masters in Business Administration (MBA) from Imperial College Business School, Imperial College, University of London and a Masters in Law from the University of Bristol, United Kingdom.

Dato’ Roushan commenced work in 1995 as a Consultant at Price Waterhouse, London. In 1997, he joined Caspian Securities Limited as an Analyst in the Emerging Markets Equity Research Department. After completing an MBA, Dato’ Roushan joined Deutsche Bank A.G. London in 1999 as an Associate with its Investment Banking Division. In 2001, he moved to Malaysia to take up the position of Manager in Debt Capital Markets at Nomura.

Since September 2005, Dato’ Roushan has worked as an independent Investment Consultant. He is Managing Director of Littleton Holdings Pte Ltd. Currently, Dato’ Roushan serves as a board member of South Pickenham Estate Company Limited, Pneumacare Limited and Sri Inderajaya Holdings Sdn Bhd amongst other private companies. He is also a Domus Fellow of St. Catherine’s College, University of Oxford and a Trustee of the East West Trust at St. Catherine’s College.

Tay Chin KwangIndependentNon-Executive Director

Tay Chin Kwang, a Singaporean aged 48, was appointed to the Board on 14 June 2012. He is a member of the Company’s Audit and Risk Management Committee.

Chin Kwang graduated with a Bachelor of Accountancy from the National University of Singapore. He is a Certified Public Accountant and is a fellow member of the Institute of Singapore Chartered Accountants.

Chin Kwang is an advisor overseeing strategic partnerships and joint ventures with Ezra Holdings Limited, a leading offshore contractor and provider of integrated offshore solutions for the oil and gas industry, listed on the Singapore Exchange. Prior to this, he was Ezra Holdings Limited’s Group Finance Director and Executive Director. He is also a director of various companies in Singapore, Thailand, Norway and Nigeria.

Chin Kwang started his career with Ernst & Young in Singapore and currently has over 24 years of experience in various accounting, finance management and business advisory functions across a broad spectrum of industries.

Sara Murtadha Jaffar SulaimanIndependentNon-Executive Director

Sara Murtadha Jaffar Sulaiman, an Omani, aged 37, was appointed to the Board on 27 August 2014.

Sara graduated with a BA in Economics from Yale University in 1999 and subsequently with an MPhil in Economics from the University of Cambridge in 2000. She is a member of the Chartered Institute of Management Accountants.

Sara started her career in 2000 working for Petroleum Development Oman in Muscat and subsequently Shell Chemicals in the United Kingdom in a variety of finance and planning roles, where she completed her accountancy training. In 2006 she joined KPMG’s Energy and Natural Resource corporate finance team in London where she was involved in a number of project finance and merger and acquisition (M&A) transactions in the oil and gas, renewables and power markets. In 2008, Sara joined Simmons and Company International, a specialist energy investment bank, where she advised on a number of M&A transactions within oilfield services.

Sara is currently an Investment Director at Arle Capital Partners, an energy focused, London based private equity firm, which she joined in 2011.

Management Team

Dr Kenneth Gerard PereiraManaging Director

Vincent Jacob LeeChief Financial Officer (CFO)/VP Finance

Mark John PatonVP New Ventures and Production

Stephen Craig DechantVP Exploration and Development

Joyce VasudevanVP Strategy Development

Ainul Azhar Ainul JamalExecutive Director of HIREX, Asia Pacific

Dr Pascal HosChief Operating Officer of HIREX

Uday JayaramVP Corporate Planning and Investor Relations

David Jayakumar RichardsVP Geoscience

Devarajan IndranVP Petroleum Engineering

Lim Kock HooiGeneral Counsell

Dr Kenneth Gerard PereiraManaging Director

Dr Kenneth Gerard Pereira, a Malaysian aged 57, has been the Managing Director of Hibiscus Petroleum since 13 September 2010. He holds a Bachelor of Science (Honours) degree in Engineering from the University of Bath, United Kingdom, a Masters in Business Administration from Cranfield University, United Kingdom and a Doctorate in Business Administration from the University of South Australia, Australia. His doctorate research topic was entitled “Start-up, Survival and Growth Strategic Actions of Initially Small Oil and Gas Exploration and Production Companies”.

Dr Kenneth has 27 years’ experience in the oil and gas industry, both in the services and exploration and production sectors. He began his career with Schlumberger Overseas S.A. in 1983 as a Field Service Engineer working in Brunei, Thailand, France, Libya, Italy, Norway and Tunisia. In 1990, he joined the Sapura Group, overseeing the service of telecommunication products and later, moved to the Group Corporate Planning Department.

In 1997, he was appointed as Vice President of Energy Sector Projects and initiated the building of the oil and gas services business of the company under the Sapura Energy Sendirian Berhad banner. Between 1997 and 2001, several service based businesses in the oil and gas value chain were grown organically or acquired and by 2001, the annual revenue of the oil and gas service business of the Sapura Group was in excess of RM100 million. In 2003, the Sapura Group successfully acquired Crest Petroleum Berhad and he became the Chief Operating Officer (COO) of SapuraCrest Petroleum Berhad (now part of SapuraKencana Petroleum Berhad Group), an oil and gas services company listed on the Main Market of Bursa Malaysia.

In 2009, Dr Kenneth became Managing Director of Interlink Petroleum Ltd, an oil and gas exploration and production company listed on the Mumbai Stock Exchange (2009 to 2011). In 2009, he was appointed to the board of STP Energy Pte Ltd, a privately held Singaporean company with offshore oil and gas exploration interests in New Zealand.

Dr Kenneth holds directorships in all of Hibiscus Petroleum’s subsidiaries and other various private companies.

Joyce VasudevanVP Strategy Development

Joyce Theresa Sunita Vasudevan, a Malaysian aged 45, graduated with a Bachelor of Economics majoring in Accounting, from LaTrobe University, Melbourne, Australia. She is a member of the Australian Society of Certified Practising Accountants and the Malaysian Institute of Accountants.

Joyce has more than 23 years’ experience in various areas of audit, corporate finance and finance. She started her career as an auditor with Ernst & Young in 1989 and after almost 5 years in audit, Joyce worked in the Corporate Finance department at two investment banks, Malaysian International Merchant Bankers Berhad in 1996 and RHB Sakura Merchant Bankers Berhad from 1997 to 2000. She was involved in numerous projects for government-linked companies and public listed companies including acquisitions, initial public offers, corporate restructurings, equity issuances and valuation exercises.

In 2000, Joyce joined Carlsberg Brewery Malaysia Berhad, where she headed the Business Analysis & Planning Department, and was tasked with the set-up of the new department to drive business plans, formulate sales, marketing, production and competitive business models to aid in management decisions, evaluate prospective investments and develop a company-wide balanced scorecard system.

In 2006, she joined SapuraCrest Petroleum Berhad (now part of SapuraKencana Petroleum Berhad Group), where she headed the Strategic & Operations Planning Unit of the Chief Operating Officer’s (COO) Office, and was responsible for the development of various systems including management reporting, project monitoring, key performance indicators and key processes. She also assisted the COO in driving a group-wide reorganisation of its operations.

Joyce joined the Company on 1 January 2011 as CFO and was re-designated as VP Strategy Development of the Company effective 5 May 2015.

Dr Pascal HosChief Operating Officer of HIREX

Dr Pascal Josephus Petronella Hos, a Dutch national aged 42 holds a Bachelor of Science degree in Mechanical Engineering and a PhD in Mechanical Engineering, from Rice University, Texas, USA.

Dr Pascal has more than 11 years’ experience in reservoir engineering, production technology and rock mechanics in major local and foreign companies. He is also experienced in project management, well and reservoir management, reserves reporting, field development planning and project execution. Dr Pascal started his career in 1995 as a Wireline Research Engineer in Schlumberger Sugar Land Technology Center, Houston, USA, where he developed statistical data analysis software for a new multi-phase fluid velocity wireline logging tool.

In 1996, he worked as a PhD Researcher with the NASA Johnson Space Center, USA, where he discovered a new form of heat transfer, which led to a redesign of the oxygen storage tanks used on board the space shuttles. In 2001, Dr Pascal joined Shell International EP, Netherlands, as a Reservoir Engineer/Research Project Manager, for the research, development and deployment of an in-house fractured water injection modelling tool. He also delivered training for operating unit and technology center staff.

In 2006, Dr Pascal joined Sarawak Shell Berhad (SSB) as Senior Reservoir Engineer under the Sabah Inboard Reservoir Management team, where he was in charge of reservoir management for the Barton and St. Joseph fields. During his time in SSB, he also held various other positions namely the Subsurface Team Lead, Water Flood Manager, and was appointed as the regional expert to further standardise water flooding developments and operational design across the Asia Pacific region. He was involved in key projects such as the St. Joseph Redevelopment project, Barton Water Injection Redevelopment Project, and the Gumusut-Kakap and Malikai projects in Malaysia.

Dr Pascal joined the Company on 14 February 2011 as Head of Petroleum Engineering and was redesignated as Chief Operating Officer of HIREX. He also sits on the board of Dahan Petroleum Limited and Hibiscus Upstream Sdn Bhd.

Devarajan IndranVP Petroleum Engineering

Devarajan Indran, a Malaysian aged 48, graduated with a Bachelor Degree in Petroleum Engineering from Universiti Teknologi Malaysia.

Dev has 23 years of in the upstream oil and gas industry with specific expertise in Production Technology and Production Optimisation. Dev has worked for Petronas Carigali, Shell, PTTEP and Petrofac prior to joining Hibiscus Petroleum. He has worked in multiple oil and gas fields around the world including in Malaysia, China, Thailand and Vietnam. During his career, he has held various positions with increasing level of responsibility and has gained a wide range of experience in Well Testing/DST, Workovers, Production Technology and Reservoir Engineering. His expertise includes Well Completion Design, Artificial Lift Selection and Optimsation, Sand Control, Waterflooding and Production Monitoring/Optimisation. He also has very strong mentoring and leadership skills.

Dev was recently the Subsurface Team Leader for Petrofac’s Berantai Field in PM-309, offshore Peninsular Malaysia which is the first Risk Service Contract (RSC) Project in Malaysia. The marginal field was successfully brought onstream in October 2012 (gas) and January 2013 (oil), with both gas and oil production being achieved in a fast track manner and within the budgeted cost.

Dev joined the Company in November 2014 and is a director of Carnarvon Hibiscus Pty Ltd, Gippsland Hibiscus Pty Ltd, HiRex Petroleum Sdn Bhd and Baqal Petroleum Ltd.

David Jayakumar RichardsVP Geoscience

David Jayakumar Richards, a Malaysian aged 50, graduated with a Bachelor of Science (Hons) degree in Earth Science from Universiti Kebangsaan Malaysia (National University of Malaysia).

David has 25 years of experience as a petroleum geoscientist in the exploration, development, and production and planning phases of the oil and gas industry. He started work as a geologist in 1989 with Sun Oil Far East Malaysia Inc. performing new block acquisition acreage evaluations in The Asia Pacific Region before moving to ExxonMobil Exploration & Production Malaysia Inc. where he worked for 15 years in the exploration, development, production and planning segments. From 2006 to 2010, he was involved in the exploration and development of gas resources for Carigali-Hess Operating Company Sdn Bhd in the jointly operated area between Malaysia and Thailand. His position prior to joining Hibiscus Petroleum Berhad was as Senior Geologist with Newfield Sarawak Malaysia Inc. Through his 26 years of experience he has accumulated knowledge of various petroleum bearing provinces in New Zealand, Australia, Indonesia, Malaysia, the Philippines, China, Pakistan, India, Thailand, UAE, Oman, Egypt, Norway and in the North Sea.

He has been involved in providing planning, mapping, geomodelling, resource/reserve assessments, geologic risk evaluation, seismic interpretation and evaluation, and operations monitoring of drilling and completion of field operations. Additionally, he has broad geoscientific interpretation experience, integrating evaluations of various seismic data in combination with sequence stratigraphy, fault analysis, reservoir pressure analysis and petrophysics.

David joined the Company on 5 October 2011.

Ainul Azhar Ainul JamalExecutive Director of HIREX, Asia Pacific

Jamal joined Schlumberger Oilfield Services in 1984 as a Wireline Field Engineer and worked in Australia, New Zealand and Indonesia. From 1996 until 2004, he held various marketing and management positions in a variety of countries around the world. From 2002 until 2004, he was the Managing Director of Schlumberger Oilfield Services, South East Asia based in Kuala Lumpur.

In August 2004, he was transferred to London, UK to serve as Schlumberger’s Director of Communications (Internal & Marketing) and in 2005, he became Director of Personnel of WesternGeco, a Schlumberger company. After serving 3 years in this role, he was posted as the Group Human Resource Director for the Reservoir Management Group based in Gatwick, UK before his arrival at Schlumberger’s Technology Hub in Kuala Lumpur, in August 2009 as Vice-President, Global Accounts, Asia. In 2010, he was appointed as the Chairman of Schlumberger Group of Companies, Asia Pacific.

He had previously served as Board member and Treasurer of the Schlumberger Foundation and also as council member of Petronas INSTEP Academic Council. Jamal is currently a member of the Institute of Electrical & Electronics Engineers (UK), the Malaysian Institute of Electrical Engineers (Malaysia) and the Society of Petroleum Engineers. He is also a council member of the Universiti Teknologi Petronas Student Advisory Council, InvestKL’s Advisory Council and the Malaysian Petroleum Resources Corporation’s (MPRC) Industry Advisor Panel. He sits on the board of International Conference and Exhibition Professionals (iCEP) and Alam Maritim Berhad as an Independent Non-Executive Director.

Jamal joined HIREX on 1 July 2013.

Azleen Rosemy AhmadVP Corporate Affairs

Azleen Rosemy Ahmad, a Malaysian aged 43, holds a Bachelor of Science degree in Actuarial Science and Finance from the Wharton Business School, University of Pennsylvania, USA, and holds a Masters in Business Administration from the University of Nottingham.

Azleen has 21 years’ experience in various areas of corporate finance, finance and general management. Azleen began her career as a management consultant with PricewaterhouseCoopers in 1992 before joining the Corporate Finance Department of RHB Sakura Merchant Bankers Berhad in 1995. During her career as management consultant and corporate adviser, she was involved in numerous projects for government agencies and public listed companies including privatisation exercises, local and foreign mergers and acquisition exercises, valuation exercises, initial public offerings, rights issues and mandatory general offers for both local and foreign companies.

In 2001, she assumed the post of Finance & Administration Manager of RCM Engineering & Services Sdn Bhd. Six years later, she joined SapuraCrest Petroleum Berhad (now part of SapuraKencana Petroleum Berhad Group) in the Strategic & Operations Planning Unit, where she was part of the team to implement the operational reorganisation of SapuraCrest Group’s Offshore Construction business, to develop and monitor the financial performance indicators of the business units and to develop & monitor the key performance indicators of Directors/Heads of the business units. She also led the team for the cost optimisation exercise of the SapuraCrest Group. She is currently pursuing her PhD in Islamic Finance at the Global University of Islamic Finance (INCEIF).

Azleen joined the Company on 15 February 2012.

Stephen Craig DechantVP Exploration and Development

Stephen Dechant, an American aged 56, graduated with a Bachelor of Science degree in Civil Engineering in 1981 from Kansas State University, Manhattan, Kansas.

Steve who has over 30 years’ experience in the industry began his career with Texaco Inc, followed by Chevron Corporation and then Murphy Oil Corporation managing large projects globally including Brazil, Nigeria, Angola, Australia, Gulf of Mexico and Malaysia. For most of the past 16 years he has been involved in the management of very complex, capital intensive deepwater projects and has demonstrated a very successful track record for meeting or exceeding project goals and targets. A highlight was Steve’s senior project management role on the Kikeh Project, the first deepwater project in Malaysia which was completed in less than 5 years from discovery.

He brings a tremendous skill set in overall Project Management including the execution of both conventional and fast-track projects and has the excellent leadership abilities required to assemble a professional, high performing development organisation.

Steve joined the Company on 1 October 2012 and is a director of Althea Corporation Limited.

Mark John PatonVP New Ventures and Production

Mark John Paton, a British and Australian citizen aged 54, holds a Bachelor of Science (Honours) degree in Chemical Engineering from the University of Leeds, United Kingdom (UK).

Mark has 33 years’ experience in the oil and gas industry, both in the services, and exploration and production sectors. He began his career with BP Exploration in 1980, as a Production and Commissioning Engineer before taking on other roles managing advanced production technology research projects, leading field development activities and assisting in the development of BP’s corporate plans and strategy.

In 1989, Mark joined BHP Petroleum and held positions including Well Services Supervisor, Production Manager and thereafter, as General Manager for BHP Petroleum’s Northern Australia Operations. His responsibilities included drilling, well completion, overseeing production from three Floating Production, Storage and Offloading (FPSO) production facilities and the management of the Darwin office and logistics base.

In 1997, Mark founded an oil and gas service company, Upstream Petroleum, with a colleague from BHP Petroleum. Upstream Petroleum became the dominant provider of operations, maintenance services and marginal field development solutions to the Australian oil and gas industry. The company grew rapidly to employ over 400 employees with offices in Darwin, Perth, Melbourne and Brisbane and an oil and gas service and logistics centre in Darwin. In 2007, subsequent to the trade sale of Upstream Petroleum to the AGR Group ASA of Norway for a headline price of AUD 85 million, AGR Group sought Mark’s assistance to establish the company’s office in Kuala Lumpur, a first step by the company into the South East Asia region. Mark served as AGR’s Managing Director in Asia Pacific for two years before returning to Australia as an independent consultant in 2009. After two years of independent consultancy work, in February 2011, Mark joined ASX-listed Cue Energy Resource Ltd as Chief Executive Officer.

Mark joined the Company in March 2013.

Yvonne AbdullahDeputy Chief Financial Officer

Age 43, Malaysian.

ACCA from Emile Woolf Accountancy College (London).

Member of the Malaysian Institute of Accountants.

20 years' experience in various areas of audit, corporate finance and finance.

She started her career as an auditor cum accountant with Waterfront Hotel & Resorts in 1994 managing internal audit in all hotel branches in a few countries, implemented the cash control system for casino operations in the Philippines, successfully setup the Standard Operating Procedures for all hotel and casino operations and assisted in the IPO of Waterfront Resorts on the PSE in 1997.

In 1999, Yvonne joined World Equipment Berhad as the Assistance General Manager of Finance where she manages the accounts, IT, HR, Franchising and New Business Development in the organization. She implemented systems procedure for new operations setup which includes areas like supply chain management, cash control, manpower utilization, workflow analysis, operating procedures and system controls.

In 2003, she joined Redtone International Berhad as the Chief Financial Officer and 2008 as the Chief Operating Officer where she is responsible for managing the Accounts, Corporate Finance, Treasury, HR & Purchasing. She have successfully brought the company to IPO on MESDAQ in January 2004 that raised US$50mil and she also managed to raise up RM20mil via Venture Capitalist Angel Funding for new incubator projects. Yvonne also have successfully completed the Government Technology Grants from MSC, SMIDEC & MATRADE for up to RM10mil and spearheaded a reverse takeover of NASDAQ OTC. She set up of the Finance Operations in Pakistan and China and implemented the ERP system for Financial Report with interfaces to Billing and Payment Gateway.

Yvonne joined AirAsia X Berhad in 2010 as the Chief Financial Officer. She was responsible for managing the Accounts, Corporate Finance, Treasury & Investor Relations. She have successful brought the company to IPO on the KLSE Mainboard on 2013 that raised US$200mil cash, secured clean Pre-IPO bridging facilities up to US$150mil, aircraft funding up to US$605mil both commercial & export credit backed financing, unsecured revolving credit facility up to US$180mil for aircraft Pre-Delivery Payments from both local & international banks and successfully completed the Sale & Leaseback of 12 Aircraft with a deal size valued at US$1.2bil. Yvonne also implemented the Risk Management Policy & eProcurement System for the organization.

Uday JayaramVP Corporate Planning and Investor Relations

Uday Jayaram, a Malaysian aged 47, graduated with a B.Sc (Honours) in Economics majoring in Accounting and Finance from the London School of Economics, United Kingdom. He is trained and qualified Chartered Accountant with the Institute of Chartered Accountants of England and Wales.

Uday has more than 21 years’ experience covering the fields of audit, management consultancy, equities research, institutional sales, capital markets and stock exchange business. Uday began his career training in audit at Ernst & Young, London within the banking and finance division. He was involved in auditing several large public limited companies including HSBC Bank, British Airways, ABB Group and IKEA. Additionally, as a special project for the World Bank, Uday worked in Kazakhstan undertaking a diagnostic study of its banks.

In 1995, Uday joined Deutsche Morgan Grenfell, Kuala Lumpur as an equity analyst and subsequently moved to CIMB Bank where he helped build out the group’s institutional research presence as a senior analyst. In 1999, he joined ING Barings (ING) and became Head of Research in 2003. By then, he was a rated analyst and had covered most sectors in Malaysia including banks, utilities, telecommunications, and plantations.

In 2005, following the takeover of ING’s broking business in Asia by Australia’s Macquarie Bank, Uday spearheaded the investment bank’s initiative to be awarded one of five foreign broker’s licenses in Malaysia. He became Head of Equity and Division Director of Macquarie Capital Securities building a business with a recognised research and sales presence amongst institutional funds both domestically and globally.

In 2010, Uday joined Bursa Malaysia Berhad as Global Head of Securities Markets responsible for developing the equities markets business of the exchange covering areas such as issuer, investor, and product and infrastructure development. Whilst at Bursa Malaysia Berhad, he built strong relationships with regional and global exchanges and furthered efforts to attract greater retail and institutional flows. Uday led the ASEAN Exchanges initiative and was member of Bursa’s Market Participants Committee and Chairman of the FTSE Bursa Index Advisory Committee.

Uday joined the Company in April 2014.

Lim Kock HooiGeneral Counsel

Lim Kock Hooi, a Malaysian aged 58, holds a Bachelor of Science (Honours) degree in Applied Geology, University of Malaya.

Lim Kock Hooi started his career with PETRONAS in 1981 where he practised as a petroleum geologist before retraining as a lawyer in 1988. He then became an in-house legal counsel with PETRONAS and was the Senior Legal Counsel for E&P when he left in 1996 to practise at the Kuala Lumpur- based law firm of Azman, Davidson & Co. Lim was the managing partner of the firm from 2009 until 2012 when he left to join the management team of Caelus Energy Asia, a US-based E&P start-up, as the Senior Vice President, Legal for the Asia-Pacific region.

Lim has over 25 years’ experience in oil and gas law practice both as in-house counsel and as advocate & solicitor whereby he has dealt with projects and assets spanning the entire value chain from upstream concessions through exploration, development and production projects covering areas in Malaysia, Indonesia, Thailand, Vietnam, the Philippines, Cambodia, Algeria and Sudan, and midstream crude/gas sales, petrochemical and refining projects to downstream distribution & retailing in Malaysia.

Lim was on the board of China Automobile Parts Holdings Limited from when it was first listed on the Main Board of Bursa Malaysia in January 2013 until 30 June 2015.

Lim joined the Company on 1 October 2014 and is an alternate director to Dr Kenneth on the boards of Lime Petroleum Ltd and Masirah Oil Ltd.

Vincent Jacob LeeChief Financial Officer (CFO)/VP Finance

Vincent Jacob Lee, a Malaysian aged 41, is a Fellow Member of the Association of Chartered Certified Accountants, United Kingdom since 2007, having completed his professional qualification in 1997.

Vincent has over 17 years of working experience and has extensive knowledge and experience covering areas of accounting and reporting, financial management, financial due diligence, Enterprise Wide Risk Management, audit and assurance related type work, completion audits, upstream oil & gas accounting, and group wide restructuring. Vincent’s career started at PricewaterhouseCoopers (formerly known as Price Waterhouse) in 1998, with their audit/ assurance division. He focused mainly on their energy clients. He was involved in numerous audits including Production Sharing Contracts (PSC), and other audit/assurance type work. He was also involved in a successful large group-wide restructuring for his client. By 2003, he had risen to a managerial position with PricewaterhouseCoopers.

In early 2004, he was seconded to PricewaterhouseCoopers London office. In addition to working on the Shell UK audits, he also managed the audit for a large FTSE listed company, and was part of the team looking at cross border tax efficiencies. He also worked on large EURO Bond offerings for his client, working closely with the lead banks and the PricewaterhouseCoopers London Capital Markets team. During his secondment, he performed completion audit for a purchase of a power plant for one of his client.

Upon his return to Kuala Lumpur in 2006, he led the audits of PricewaterhouseCoopers’ large clients (including Shell and Astro). In addition to the audits and assurance type work, he was also involved in presenting technical presentations/public courses on accounting standards (i.e. Financial Reporting Standards) both locally and internationally. He presented a public course in Dubai on “IFRS in the Oil & Gas Industry”.

Vincent then joined Mubadala Petroleum Malaysia in 2010 where he was tasked to lead the finance function. During his time with Mubadala Petroleum, he was instrumental in setting up the financial controls and governance for the Malaysian operations. He was responsible for the overall risk management for the Malaysian operations. Vincent is well versed with the PSC requirements. From 2012 to 2014, in addition to Mubadala Petroleum Malaysia, he was also overseeing the finance function for Mubadala Petroleum Vietnam.

Vincent joined the Company on 1 April 2015.

Other Key Member

Christopher Russell DyasHead of Projects

Elike MawuliHead of Drilling

Azleen Rosemy AhmadGeneral Manager, Corporate Finance

Christopher Russell DyasHead of Projects

Christopher Russell Dyas, a British aged 53, is Head of Projects. He graduated with an MSc in Thermal Power from Cranfield Institute of Technology in the UK in 1983 and went on to complete an MBA at the Cranfield School of Management in 1990.

He has 28 years experience in E&P engineering and projects. He also has contractual and financial experience with skills in assessing companies and projects, and developing business plans.

He started his career in 1983 with Cooper Energy Services (now a subsidiary of Rolls-Royce) heading the Testing Department, testing industrial gas turbines and gas compression equipment primarily for the oil and gas industry. In this role, he was responsible for the in-house commissioning and performance testing of turbo-machinery units. He headed a team of engineers and technicians including factory QA / QC personnel. He also undertook the build of turbo-machinery units in Norway and carried out on-site client training.

In 1986, he joined Marathon Oil (UK) Ltd as a Maintenance and Rotating Equipment Engineer, responsible for various offshore facilities systems and spent time offshore during the commissioning and initial production on the Brae B platform where he was responsible for identifying system problems in the early stages, and implementing solutions prior to full production.

After completing an MBA in 1990, he joined Atlantic Power and Gas in Aberdeen, Scotland and was at the forefront of risk - reward based contracting in the offshore oil and gas services sector.

In 1994, he joined the Gas Turbine Division of Wood Group in Aberdeen, Scotland as Business Development and Marketing Manager.

He was the focal point within the division in the bidding of onshore and offshore maintenance contracts for the group and played the lead role in developing new concepts of risk based contracts for turbo-machinery. He was instrumental in opening up new business in Asia where he championed long-term service contracting for oil, gas and power production clients.

As Marketing Manager, he initiated a review of market activities of all division companies leading to a step change in market approach and raising the profile and awareness of the company internationally.

In 2000, he moved to Kuala Lumpur, Malaysia as General Manager for the Asia-Pacific region heading a business development team in gas turbine services.

In 2002, he joined SapuraCrest Petroleum Berhad as Project Director / General Manager in Malaysia, where he engaged in the bidding and execution of several brownfield and greenfield projects related to oil and gas services, and most recently undertook a project in India for the refurbishment of offshore platforms.

Elike MawuliHead of Drilling

Elike Mawuli, a dual Australian and Ghanaian citizen, aged 32, is our Head of Drilling. He graduated with a Bachelor of Engineering (Mechatronics) in 2001 and subsequently completed a Masters in Engineering Management in 2007, both from Queensland University of Technology, Australia. He is also a member of the Institute of Engineers Australia and the Project Management Institute.

He has over ten years' experience in the oil and gas sector, in both onshore and offshore drilling, well design and well servicing operations, and has worked in various operating environments in Papua New Guinea, Australia, Indonesia, and East Timor. Whilst working in Papua New Guinea, he was exposed to high cost land wells in extremely remote heli-supported locations. In Australia, he has worked on exploration and appraisal wells in the Bowen, Surat, Browse, Bonaparte and Cooper-Eromanga basins. In Indonesia, he was involved in exploration activities in East Java while in East Timor, he was involved in planning deepwater wells in the Timor Leste Exclusive Area (TLEA).

Elike has both conventional and non-conventional oil and gas experience, and has provided consultancy services on the use of drilling technologies to other industries, mainly the coal industry in Queensland and New South Wales.

He has worked for both small and large operators, and on a number of new start-up operations where he set up the systems required to ensure cost effective and efficient commencement of operations. Companies he has worked for in the past include Santos Limited, InterOil Corporation, Upstream Petroleum, Oil Search Limited, Eni Australia Limited, and Talisman Energy.

Azleen Rosemy AhmadGeneral Manager, Corporate Finance

Azleen Rosemy Ahmad, a Malaysian aged 43 is our General Manager of Corporate Finance. She graduated with a Bachelors of Science in Actuarial Science and Finance from the Wharton Business School, University of Pennsylvania, USA, and holds a Masters in Business Administration from the University of Nottingham.

She has 20 years' experience in various areas of corporate finance, finance and general management. She began her career as a management consultant with PriceWaterhouseCoopers in 1992 before joining the Corporate Finance Department of RHB Sakura Merchant Bankers Berhad in 1995. During her career as management consultant and corporate adviser, she was involved in numerous projects for government agencies and public listed companies including privatization exercises, local and foreign mergers and acquisition exercises, valuation exercises, initial public offerings, rights issues and mandatory general offers for both local and foreign companies.

In 2001, she assumed the post of Finance & Administration Manager of RCM Engineering & Services Sdn Bhd. 6 years later, she joined SapuraCrest Petroleum Berhad in the Strategic & Operations Planning Unit, where she was part of the team to implement the operational reorganization of SapuraCrest Group's Offshore Construction business, develop & monitor the financial performance indicators of the business units, develop & monitor the key performance indicators of Directors/Heads of the business units as well as lead the team for the cost optimization exercise of the SapuraCrest Group.

Business Strategy

Entry Point Strategies

Identification of Prospects: Through their extensive relationship networks built over many years of industry participation, our Management team is constantly aware of such opportunities.

We aim to shortlist specific investment opportunities available in our regions of interest which meet our selection criteria.

Risk Profile Key Criteria
Low Proven undeveloped reserves IOR / Service Agreement
Moderate Proven basin
Good data availability
Good fiscal terms
Political stability
Stable partners

Our main investment considerations:
  • Fiscal terms in the jurisdiction of the target asset;
  • Financial returns on the capital employed;
  • Political and security risks;
  • Technical, operational and sub-surface risks;
  • Environmental considerations;
  • Overall potential for upside.

Early Competitive Strengths
Extensive experience and relevant skills of our Board and Management Team
  • Substantial business, technical and operational knowledge and industry contacts / sources, upon which to generate acquisition opportunities.
  • Multi-disciplined background with experience in evaluating the risks present in initial opportunities, transaction development, acquisition due diligence, structuring, negotiating and closing acquisition and financing transactions in both the public and private markets.

Access to funds
  • Competitive advantage over entities having a similar business objective as ours in acquiring a target company or asset with growth potential on favorable terms.
  • Facilitate easier access to the debt markets

Investment in new technologies
  • Our key strategic technology initiatives :- to license / own or collaborate in some manner with the developers of such technologies that improve the probability of securing oil and gas assets. These technologies will be expected to :-
    • Reduce the time to first oil.
    • Unlock new resources.
    • Improve the recovery factor.
    • Increase efficiency of production facilities.

Risk Management
  • In our early years pursuant to the completion of the Qualifying Acquisition, risk management shall be important and we intend to establish a Risk Management Committee led by a competent and experienced Board member to focus on this element of the business.
  • Our focus shall be to utilise our technical knowledge and experience to build our Company such that it achieves a financially resilient position with a balanced business risk profile. We also intend to outsource activities and services which are not our core competence, particularly if we utilise such services on a sporadic basis and if there are commercial risk factors that merit such actions.

Growth Strategies
Continued replacement of reserves
  • Our key objective :- to ensure that reserves are replaced at a rate faster than they are produced and at a relatively low cost.
  • Potential strategic actions:
    • reprocessing and interpretation of data for assets already owned;
    • enhancing the producible volume and/or extending the producing life of the assets;
    • acquiring further assets either through acquisitive or licensing processes;
    • embarking on infill drilling programs to capture stranded pools of hydrocarbons;
    • debottlenecking plant and facilities to enable enhanced production; and
    • introducing new technologies which are implemented in "farm-in" partners to assist in the exploration, development and exploitation of high potential assets.

Pursuing a balanced portfolio of assets
  • Our long term strategic objective:- to achieve a balanced portfolio of assets, in which cash from on-going operations will be sufficient to return dividends and fund new ventures during their early (and potentially, more risky) stages.
  • Spread the risks associated with any single project (owned by our Company) not performing to expectations.

Safe operations
  • Our key objective:- to ensure that our Company executes its operations safely, utilising industry accepted best practices which are also friendly to the environment.
  • In this respect, we have developed policies and principles which shall be implemented at the appropriate time.

Opportunity Drivers

Demand Issues

Global energy demand is projected to increase as population and economic drivers increase. World consumption is roughly 84mln bbls of oil / day in 2010. Depending on the forecast scenario used, future consumption (2035) is set remain roughly the same or significantly increase. If the current practices of energy consumption are maintained oil, world energy demand will be around 110mln bbls of oil / day by 2035. If new policies are implemented such as the current trend for hybrid cars and a move to more nuclear energy, world energy consumption will still increase albeit slightly slower. If policies are implemented such that the maximum CO2 exhaust remains below 450ppm so as to reduce the impact of global warming, world energy demand is projected to be around 80mln bbls of oil / day by 2035.

World Primary Oil Demand (By Scenario)

Source : World Energy Outlook © OECD IEA, 2010, International Energy Agency

On the other hand oil reserves are not being replaced at the rate at which they are being consumed. The number of new oil and gas discoveries is falling, and production from newly discovered super giant and giant oil fields is not significant compared to previous decades. Where as in the 1960s most of world demand for oil was produced from a few giant oil fields (>5 billion bbls of oil in place) the current average size of fields being discovered is less than 100mln bbls of oil in place. Even though overall production is still increasing, more and more of this production is coming from a larger number of smaller fields.

Conventional oil discoveries and production worldwide

Source : World Energy Outlook © OECD IEA, 2010, International Energy Agency

Supply Solutions

To keep up with the growing demand for oil and gas, oil companies have to venture into deeper water as most of the bigger fields on land and in shallow water have already been produced. The average water depth for each new subsea well is increasing over time as follows:

  • Before 1989 : 100m
  • In 1993 : 200m
  • In 2010 : 800m
Maximum operational depft of offshore exploration and production wells worldwide
Source : World Energy Outlook © OECD IEA, 2008, International Energy Agency

The world average amount of oil that is recovered from a reservoir is roughly 35%. To extract more oil from these reservoirs becomes increasingly more expensive.

Both these factors contribute to increasing development cost over time.


Oil Prices

The combination of the increasing tension between supply and demand and the increasing development cost contribute to al forecasts pointing to increasing oil prices over the next 20 years.

Possible scenarios for oil price trends

Source : Innovation Energy Environment; Panorama 2010; The Oil Context and Trends in 2009

Global Activity Levels

The growth in demand underpinned by a strong oil prices going forward, provides a viable environment to grow an oil & gas E & P company.

Current activity levels in the E & P industry are reverting to and in some cases even exceeding pre-Global Financial Crisis levels

Worldwide upstream oil & gas capital spending by type of company

Source : World Energy Outlook © OECD IEA, 2010, International Energy Agency

National Oil Companies such as Petronas, Petrobras, and Pertamina are taking an ever increasing stake in the overal world oil production, however the independent oil companies will continue to play a significant role in the oil & gas value chain as their cumulative oil production is projected to remain stable over the next 25 years. It is interesting to note again that this increase of overal production is coming from an ever increasing number of smaller fields.

World oil production by type of company

Source : World Energy Outlook © OECD IEA, 2010, International Energy Agency

Opportunities Asia Pacific

The reason why Hibiscus Petroleum is focusing on the Asia-Pacific region can be explained as follows. The Production / Consumption gap in Asia Pacific is increasing. Currently there are only 3 countries that are net exporters of oil. By 2015, it is projected that only one country will be a net exporter of oil.

  2008 2009 2010f 2011f 2012f 2013f 2014f 2015f
Asia Pacific Consumption
(mil bbl/day)
25.9 26.3 27.1 27.7 28.3 29.1 29.9 30.6
Asia Pacific Production
(mil bbl/day)
8.7 8.6 8.9 9.0 9.2 9.0 9.1 8.9

Whereas in the Middle East most of the production comes from giant oil fields, in Asia most of the production comes from small oil fields.

As oil prices trend higher and the deficit between supply and demand increases, each country within the region will give greater emphasis to enhancing domestic production. Increasing prices will make many small fields viable and a diverse mix of opportunities will require the deployment of a varied and increased range of resources (capital and skills). An improved oil price regime and better fiscal terms for smaller fields (in some cases) allow fields of reduced volumes to be commercially exploited.


Global oil & gas market

Market Outlook
Oil & gas market outlook - demand
Strong global demand fuelled by growth in Asia

Chinese oil & gas demand 1965 - 2010 (mbd)

  • According to the International Energy Agency (IEA), global primary energy demand will continue to grow through 2035.
  • Demand growth is mainly driven by the populous countries of Asia, which are experiencing high economic growth.
  • Over the last decade China has accounted for about 40% of global oil demand growth.

Oil & gas market outlook - supply
Discoveries are struggling to keep pace with production

World oil* discoveries and production 1960 - 2009 (billion bbls/year)
  • Although the current global production of oil and gas is sufficient to meet current global demand, spare production capacity is limited and the lead time to develop new supplies is long.
  • Replacing production with new discoveries is challenging and has become increasingly difficult.
  • In addition, the rate at which new resources are discovered has increasingly fallen short of production since the 1980s.
  • Adding new production capacity has become harder, and more marginal and high cost resources have to be developed to meet demand.

Oil price predictions
Pareto estimates an average price of USD 100 per barrel

World oil* discoveries and production 1960 - 2009 (billion bbls/year)

  • The current Brent forward reflects a price of USD 91.5 per barrel in 2020.
  • Pareto estimate is USD 110 per barrel in 2020.
  • IEA estimate is at USD110 per barrel in 2020.

The Middle East - Oman and U.A.E.

Holds the world's largest oil & gas reserves supported by good infrastructure

Maximum operational depft of offshore exploration and production wells worldwide

  • The Middle East contains more than 50% of the world's oil reserves (while it constitutes only 9% of the oil demand) and ~40% of the world's gas reserves (while it constitutes only 12% of the gas demand).
  • The Middle East has a strong refining capacity of 7.9 million barrels per day (as of 2009) and a well developed oil & gas infrastructure.

Oman
Largest non-OPEC producer in the Middle East with largely unexplored offshore fields

Overview

  • Largest non-OPEC producer in the Middle East (800,000 barrels liquids/day and 2.4 billion cubic feet of gas/day (2009)).
  • Crude oil output has increased year-on-year since 2008.
  • Offers a stable operating environment with a collaborative government offering PSCs with comparably attractive terms.
  • Oman's offshore fields remain largely unexplored.
  • Increasingly focused on gas production in recent years.

Liquids and gas production
Possible scenarios for oil price trends
Source : Wood Mackenzie

Legislative, political and risk considerations
  • Political outlook remains moderate with scope for sporadic protests in the event of failure to implement reform.
  • Inflation is expected to average at 3.6% in 2011-15.
  • Current account surplus is forecast to narrow in 2012-13 on the back of lower export earnings and a slowdown in global oil demand, however non-oil exports to increase in and after 2013.
  • Overall country risk: Stable (BBB by Economist Intelligence Unit).

Liquid reserves (remaining) 2.84 million bbls (1/1/2011)
Liquid production 813 bbls/day (2009)
Liquid reserves/production 16.3 years
Gas reserves (remaining) 30.13 tcf (1/1/2011)
Gas production 2.44 bc/f (2009)
Gas reserves/production 33.8 years

Well developed network of oil infrastructure

Possible scenarios for oil price trends

  • Oman's highly developed oil infrastructure network comprises ~2,200 kilometres of onshore oil/condensate pipelines and 2,500 kilometres of gas pipelines.
  • The Main Oil Line (MOL) extends throughout the country (diameter between 6 and 42 inches) and main 48 inch gas export pipeline running from the Saih Rawl field in central Oman to the LNG plant on the coast.
  • Oman has oil storage facilities at Mina Al Fahal (near Muscat) with a capacity of around 4.8 million barrels.
  • Mina Al Fahal also holds one of two* refineries in Oman and oil terminal; Oman's crude is either exported** or processed at the refinery for domestic use.

    *The second refinery is the Sohar refinery.
    **Export mainly through two export single buoy moorings, which berth around 350 crude tankers on an annual basis
    .

UAE
One of the largest producers and exporters globally

Overview

  • Third largest liquids producer in the Middle East primarily from Abu Dhabi.
  • Crude oil production in the UAE is subject to quotas agreed by OPEC (apply only to crude oil, not to condensate and NGLs).
  • World's fourth largest net oil exporter with a daily production around 3.2 million barrels per day. Abu Dhabi plans to increase oil production capacity to between 3.5 and 4 million barrels per day by 2017.

Liquids and gas production

Possible scenarios for oil price trends
Source : Wood Mackenzie
Legislative, political and risk considerations
  • Political outlook is broadly stable.
  • Inflation is expected to remain low at an average of 2.3% in 2011-15.
  • Federal budget is expected to move from a deficit in 2010 to a surplus in 2011-12 but back to a deficit in 2013 owing to increased government spending and a decline in oil prices.
  • Overall country risk: Stable (BB by Economist Intelligence Unit).

Key Facts

Liquid reserves (remaining) 45.12 billion bbls (1/1/2011)
Liquid production 3.19 million bbls/day (2009)
Liquid reserves/production 38.8 years
Gas reserves (remaining) 52.12 tcf (1/1/2011)
Gas production 3.2 bc/f (2009)
Gas reserves/production 44.6 years

Long established oil infrastructure
Oil infrastructure


Possible scenarios for oil price trends

  • Long established oil infrastructure (particularly Abu Dhabi and Dubai).
  • Offshore export terminals at Das Island and Zirku Island to which crude is delivered by pipelines.
  • Network of pipelines onshore linked to the major export terminals at Ruwais and Jebel Dhanna and the oil refineries at Ruwais and Umm Al Nar.
  • Since 1950 drilling activity has been concentrated in Abu Dhabi, where ~330 exploration and appraisal wells have been drilled.
  • Northern RAK concession region has a well developed infrastructure.
  • In Ras Al Khaimah, around 24 wells, eight onshore and 16 offshore, have been drilled since the mid 1960s.


FAQs On Exploration & Production

Q1: Glossary

Suspended Well (Also known as a Capped Well) : A well that has been capped off temporarily. This is a process to allow the drilling rig to leave and go off contract after drilling and testing activities are completed. It provides the ability to re-enter the well and perform further tests or use the well for production at a later time.

Stock Tank Barrels : One barrel of stabilized or dead oil at the surface after the gas has escaped.


Q2: How does oil and gas form in the ground and how do you get it out?

Crude oil and natural gas are naturally occurring substances present in rock amidst the earth's crust. The origin of oil and gas is organic material - the remains of plants and animals - compressed in sedimentary rock such as sandstone, limestone and shale. Sedimentary rock is a product of sediment deposits in ancient oceans and other bodies of water. As layers of sediment were deposited on the ocean floor, decaying remains of plants and animals were integrated into the forming rock. This organic material eventually transformed into oil and gas after being exposed to a specific temperature and pressure range deep within the earth's crust.

Because oil and gas are less dense than water, which occurs in huge quantities in the earth's subsurface, oil and gas migrate through relatively porous sedimentary source rock toward the earth's surface. When the hydrocarbons are trapped beneath relatively less porous cap rock, an oil and gas reservoir is formed.

These reservoirs, which are simply layers of rock containing relatively large quantities of oil and gas, are our source for crude. In order to bring the hydrocarbons to the surface, a well must be drilled through the cap rock and into the reservoir. Drilling rigs work in a similar fashion as a hand drill; a drill bit is attached to a series of drill pipes and the whole thing is rotated to make a well in the rock. Once the drill bit reaches the reservoir, a productive oil or gas well can be completed and the hydrocarbons can be pumped to the surface.


Q3: What parts of the industry do Upstream, Midstream, and Downstream refer to?

In Malaysia, the Securities Commission introduced the SPAC listing guidelines in August 2009.


Q4: Can you explain some of the terminology used in the industry?

Currently, there are no listed SPACs in Malaysia.


Q5: What is primary, secondary (improved) and tertiary (enhanced) recovery?

SPACs were introduced in the US in 2003, and have increased significantly since then. Korea has also introduced SPACs in recent years. To a lesser extent, there are also SPACs in Germany.


Q6: How are Exploration and Production companies valued?

There are several key aspects of a SPAC:- management's credibility, investor protection, refund flexibility and alignment of interest between investors and management.

Credible Management
A SPAC must have a credible management team who can identify attractive targets and make valuecreating acquisitions that will meet the SPAC's strategy and enhance shareholders' value.

    The management team must have the track record, qualifications, and experience:-
  • which is relevant to specific industries where acquisitions are intended to be made and to achieve the SPAC's business strategy as laid out in the prospectus; and
  • to competently perform their individual roles, be it executive, legal or regulatory.

nvestor Protection
  • A SPAC must place at least 90% of its IPO proceeds in a trust account managed by an independent custodian which is a trust company, licensed bank or merchant bank. Such proceeds may only be invested in securities issued by the Malaysian government, money market instruments and AAA-rated papers, before it is utilized for any acquisitions.
  • The acquisitions must have an aggregate fair market value equal to at least 80% of the amount in the trust account (qualifying acquisition or QA).
  • The SPAC must complete a qualifying acquisition within a permitted timeframe of no later than 36 months from the date of listing.
  • The qualifying acquisition must be approved by a majority in number of shareholders representing at least 75% of the total value of securities present or voting by proxy at a general meeting. Acquisitions of multiple qualifying acquisitions must be approved concurrently.
  • Members of the management team and persons connected to them cannot vote on a resolution approving a qualifying acquisition.

Refund Flexibility

    Investors are entitled to receive 90% of their funds held in the trust account (net of taxes and distribution/liquidation expenses which are not expected to be substantial) under the following situations:-
  • If they vote against a qualifying acquisition that is subsequently approved and completed, they would receive, in exchange for their shares, a pro-rata portion of the amount held in the trust account, being 90% of their funds held in the trust account (after deducting relevant taxes and costs of such exchange which are not expected to be material).
  • If a qualifying acquisition is not completed within the 3-year timeframe, the SPAC must liquidate and proceeds must be returned to its investors.

Alignment of Interest between Investors and management
To ensure greater alignment of interest between investors and management, the management team must, in aggregate, own at least 10% in the SPAC at IPO. Post IPO, their interest is not allowed to be sold, transferred or assigned until the completion of the QA.


Summary

Banks and Private Equity players have been selective in funding companies involved in high-risk ventures.

Several junior E&P companies operating in the South East Asia region that committed to aggressive work programs in a "land grab" prior to the financial crisis currently cannot fulfill obligations. Some have utilized first round funding on early assessment and are now looking for farmees or further funding.

Larger companies are streamlining their portfolios, which include the disposal of smaller oil and gas fields whilst smaller companies funded by Private Equity players are also looking for exits.

Large independents are moving their investments (which are declining in size) from our regions of interest to Africa and other growth areas (for medium and large scale opportunities). Their migration is leaving investment opportunities of the profile that would be of interest to our Company.


Lack of resources and limited capacity to raise additional funds in a tight capital market means credible leads cannot be appraised and exploited.

There are a number of potential assets which are currently available at valuations that are not reflective of their full productive potential.


Well funded companies that understand the region, the industry and the players have an opportunity to acquire low risk opportunities with high upside potential and / or develop small fields.

CONCESSIONS AND PARTICIPATION INTERESTS SECURED

The concession areas are located in Oman, the United Arab Emirates and Norway.

UAE and Oman

In the UAE, two concessions are located in Ras Al Khaimah (RAK), which is located in the south eastern part of the Persian Gulf. The RAK North Concession covers an offshore area of 1,200 km2. The RAK Onshore concession covers a land area of 886 km2.

The Sharjah Concession covers an area of 1,600 km2 of the east coast of Sharjah. The Block 50 Oman Concession covers an area of 16,900 km2 and is situated of the south east coast of the Sultanate of Oman (located to the south and east of the UAE).

The Concessions are governed by executed Exploration & Productions Sharing Agreement (EPSA) in Ras Al Khaimah and Oman and a Concession Agreement (CA) in Sharjah, which outline the rights and obligations of the parties to the EPSAs and CA. An overview of the terms of the EPSAs and CA governing the Concessions are as follows :

Details RAK North EPSA RAK Onshore EPSA Sharjah CA Block 50 EPSA
Term Initial term - 3 years (from original agreement)

Second term - 3 years

Upon Declaration of Commerciality (DOC) - 20 years with rights to request for renewal for an additional 5 years
nitial term - 18 months

Second term - 2 years

Upon DOC - 20 years, with rights to request for renewal for an additional 5 years
Initial term - 3 years

Upon DOC - 20 years
Initial term - 3 years

Second term - 3 years

Upon DOC - 20 years with rights to request for renewal for an additional 5 years
Effective date of the EPSAs and CA 24 May 2010 (original agreement)

10 April 2012 (amended agreement)
10 April 2012 6 June 2011 23 March 2011
Awarding Parties of the EPSAs/CA Government of Ras Al Khaimah (as represented by Rakgas L.L.C) Government of Ras Al Khaimah (as represented by RAK GAS L.L.C) Government of the Emirate of Sharjah Government of the Sultanate of Oman
Ownership Dahan (100%) Baqal (100%) Concession Zubara (100%) Concession Masirah (100%)
Lime's Participating Interest in the Concession Companies 59% 100% 100% 74%

LIME GROUP

Hibiscus Petroleum Berhad Group (the “Group”) has a 35% equity stake in Lime Petroleum Plc (“Lime”) which has access to the following oil and gas concessions:

  1. Norway

    8 licenses from the acquisition of participating interests from North Energy ASA1 (“North Energy”), 6 offshore licenses issued by the Norwegian Ministry of Petroleum and Energy as part of the Awards in Predefined Areas (“APA”) process held in 2014 and 2015, 3 licenses (of which 1 license is subject to authority approval) from the acquisition of participating interest from Lundin Norway AS2 (“Lundin”), and 2 licenses (subject to authority approval) from the acquisition of participating interest from EnQuest Norge AS3 (“EnQuest”).
  2. Middle East

    • Block 50 Oman Concession in the Sultanate of Oman (“Block 50 Oman Concession”)
    • RAK Offshore Concession in Ras Al Khaimah, United Arab Emirates (“UAE”) (“RAK North Offshore Concession”)
    • RAK Onshore Concession in Ras Al Khaimah, UAE (“RAK South Onshore Concession”)
    • Sharjah Offshore Concession in Sharjah, UAE (“Sharjah East Coast Concession”)

All public announcements or press releases in relation to petroleum operations in the Middle East concessions require the prior approval of the relevant government authority as stipulated in the respective exploration and production sharing agreements.

Given the extended period of low oil prices, the Company intends to continue its review of investments in licenses that are primarily exploration weighted. As a majority of the assets within the Lime Group fall into this category, a review of the Lime Group investment will constitute part of this process.

1 North Energy is a qualified petroleum exploration company, listed on the Oslo Stock Exchange, which holds participating interests in 23 licenses in the Norwegian Continental Shelf.
2 Lundin Petroleum has exploration and production assets mainly in Europe and South East Asia.
3 EnQuest PLC is an independent oil and gas development and production company with a primary geographic focus on the United Kingdom Continental Shelf. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is building a presence in oil basins outside the United Kingdom North Sea, with substantial production from Malaysia.

Overview of the Ras Al Khaimah (RAK) North Concession – DAHAN PETROLEUM LIMITED

Lime BVI holds a 59% ownership in Dahan Petroleum Limited which holds a 100% working interest in the RAK North Concession in Ras Al Khaimah, one of the emirates of the UAE. The concession surrounds the Saleh contract area which is an existing gas condensate field operated by DNO.

Location: The Saleh field is located in the north-west corner of the concession. The concession is regulated by the RAK North EPSA. The concession has an initial exploration period of 3 years (from the original agreement date), with an optional 3-year extension after completion of the minimum work obligations (as per the RAK North EPSA), followed by a 20-year development and production period commencing from Declaration of Commerciality (DOC), with a possible extension of 5 years.

Surrounding area: There are 3 active licenses in Ras Al Khaimah, including the offshore Ras Al Khaimah contract area, the Saleh contract area and the RAK B contract area. In Ras Al Khaimah, there have been 2 discoveries offshore: the Saleh gas condensate field, which is surrounded by the RAK North Concession area, and the RAK B oil discovery (previously known as the Baih structure) about 8km from the RAK North Concession area.

Review of drilled wells: Between 1968 and 1998, several wells have been drilled inside the RAK North Concession area. However, most of the wells drilled were inside the Saleh gas condensate field and to-date, wells outside the Saleh gas condensate field have not discovered commercial quantities of hydrocarbons.

Overview of the Ras Al Khaimah Onshore Concession – BAQAL PETROLEUM LIMITED

Lime Group's concession in RAK Onshore is held by Baqal Petroleum Limited.

Location: The RAK Onshore Concession covers an area of 886km2 in Ras Al Khaimah, and is located in the southern part of the Emirate of Ras Al Khaimah.

Surrounding area: The RAK Onshore Concession is bordered on the onshore-west by an onshore concession held by DNO International ASA, in the onshore-east by Block 17 in Oman operated by PetroTel Inc, in the south-east by an onshore Fujairah concession previously operated by Naftogaz Middle East LLC, and in the south-west by the Emirate of Umm-Al Quwain and the Crescent Petroleum concession in Sharjah. There are 2 onshore gas fields in the onshore UAE, the Margham field (DME) in the Dubai Emirate and the Sajaa field (SNOC) in the Sharjah Emirate

Review of drilled wells: 3 wells were drilled by Operator IPC 1980-1992, all in the southern part of the license i.e. Jiri-1 (1980), Al Khat-1(1988) and West Jiri-1 (1993).

Overview of the Sharjah Concession – ZUBARA PETROLEUM LIMITED

Lime Group's concession in Sharjah is held by Zubara Petroleum Limited.

Location: The concession area is located on the east coast of Sharjah and is divided into 2 areas, separated by Fujairah. The previous concession holder was Matco Inc., but the identified prospects were not drilled as Matco Inc exited before drilling. The concession is currently regulated by the Sharjah CA. The concession provides for an initial exploration period of 3 years, followed by a 20-year development and production period after Declaration of Commerciality (DOC) (no option for extension under the Sharjah CA).

Surrounding area: Sharjah has 3 active offshore exploration licenses. However, all of these areas are on the west coast of Sharjah while the east coast of Sharjah remains largely unexplored.

Review of drilled wells: 5 wells have been drilled in Fujairah and Oman north of Sharjah, on the east coast of the UAE but all the wells did not encounter hydrocarbons.

Overview of the Block 50 Oman Concession – MASIRAH OIL LIMITED

Lime Group's concession in Oman is held by Masirah Oil Limited. The concession is regulated by the Block 50 EPSA. The concession has an initial exploration period of 3 years with a 3-year extension period, followed by a 20-year development and production period after Declaration of Commerciality (DOC), with a possible extension of 5 years.

Location: The Block 50 Oman Concession contract area lies off the east coast of Oman, next to onshore Block 4 (the Ghunaim contract area) and is just north of Block 52 operated by Circle Oil Plc. The Block 50 Oman Concession, like most of Oman's offshore acreage, is largely unexplored. Although previous operators have acquired over 4,500 km2 of seismic, the quality is variable and typically poor where shallow ophiolite layers occur. These layers are a feature of the geology off the coast of Oman. The previous operator, Hunt Oil Company, was awarded the block in 2001. Hunt Oil Company carried out a number of geological surveys, including a high resolution 2D seismic survey in an attempt to identify a prospective drilling location. To-date, there are 8 identified prospects in the concession.

Surrounding area: Tethys Oil AB, CC Energy Development S.A.L, and Mitsui E&P Middle East B.V. have discovered oil on Block 3 and Block 4 onshore Oman. These 2 blocks are adjacent to Block 50 Oman Concession, and are currently producing 11,658 barrels of oil collectively per day (gross average for March 2012) from Block 3 and Block 4.

Review of drilled wells: Masirah-1 and Masirah-2 were drilled in 1975 and 1976 while in 1984, Amoco Corporation drilled a third well in the Block 50 Oman Concession area, Maimun-1. The wells found show some good reservoirs in certain geological layers, but no commercial discoveries were made.

Norway

8 licenses from the acquisition of participating interests from North Energy ASA1 (“North Energy”), 6 offshore licenses issued by the Norwegian Ministry of Petroleum and Energy as part of the Awards in Predefined Areas (“APA”) process held in 2014 and 2015, 3 licenses (of which 1 license is subject to authority approval) from the acquisition of participating interest from Lundin Norway AS2 (“Lundin”), and 2 licenses (subject to authority approval) from the acquisition of participating interest from EnQuest Norge AS3 (“EnQuest”).

1 North Energy is a qualified petroleum exploration company, listed on the Oslo Stock Exchange, which holds participating interests in 23 licenses in the Norwegian Continental Shelf.
2 Lundin Petroleum has exploration and production assets mainly in Europe and South East Asia.
3 EnQuest PLC is an independent oil and gas development and production company with a primary geographic focus on the United Kingdom Continental Shelf. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is building a presence in oil basins outside the United Kingdom North Sea, with substantial production from Malaysia.

(Based on Lundin’s Corporate Presentation, September 2015)

3D Oil/VICP57/VICL31

In January 2013, as part of our strategy to build a balanced portfolio of assets, Hibiscus Petroleum acquired a 13% stake in an Australian–listed company, 3D Oil Limited (3D Oil) and a 50.1% stake in the latter’s VIC/P57 permit located in the prolific Gippsland Basin off south-eastern Australia. The VIC/P57 permit contains a proven discovery of 8.0 million barrels of oil in the West Seahorse field as well as a number of exploration prospects.

On 13 November 2013, the Australian National Offshore Petroleum Titles Administrator (“NOPTA”) approved the Field Development Plan for West Seahorse. On 5 December 2013, NOPTA awarded Carnarvon Hibiscus Pty.Ltd. (CHPL) (on behalf of the VIC/P57 Joint Venture) a Production License VIC/L31 over the West Seahorse oilfield.

Hibiscus Petroleum, on 4 July 2014, signed a series of binding agreements with 3D Oil to increase its effective stake in both the VIC/L31 Production Licence and the VIC/P57 Exploration Permit. Following this, the Australian Foreign Investment review Board (FIRB) had via its letter dated August 11, 2014 stated that the FIRB has no objections to the proposed transactions in terms of Australia’s foreign investment policy.

As part of the agreement, 3D Oil, CHPL, Althea Corp Ltd and HiRex had agreed to transfer a 5% stake in the VIC/P57 exploration permit to CHPL, bringing its stake to 55.1%. The arrangement also gave CHPL the exclusive option to increase its stake in the VIC/L31 West Seahorse oilfield from 50.1% to 100% which it subsequently exercised. CHPL therefore currently has a 100% equity in the West Seahorse oilfield.

In the VIC/P57 concession, following exercising an option to acquire the interest in VIC/P57 held by HiRex (Australia) Pty Ltd (“HiRex (Australia)”), Hibiscus Petroleum Group (the “Group”)’s interest is 78.3%. CHPL had on 17 November 2014 acquired additional interest in VIC/L31, bringing its total interest held in VIC/L31 to 100%.

HiRex Petroleum

On 21 March 2013, Orient Hibiscus Sdn Bhd (Orient Hibiscus), a wholly-owned subsidiary of Hibiscus Petroleum Berhad (Hibiscus Petroleum) and Rex South East Asia Ltd signed a Shareholders’ Agreement to jointly collaborate on an equal partnership basis, HIREX Petroleum Sdn Bhd (HIREX).

HIREX and Orient Hibiscus also signed a Support Services Agreement for the provision of support services relating to various technical, business development and financial services to be provided by Orient Hibiscus to HIREX.

HIREX and Rex Technology Management Ltd (the owner of Rex Technologies) further signed an IP Licence Agreement to provide HIREX the right to use Rex Technologies in 11 countries. These countries are Myanmar, Thailand, Malaysia, Cambodia, Brunei, Vietnam, Philippines, Papua New Guinea, Indonesia, Australia and New Zealand.

The HIREX joint venture is consistent with Hibiscus Petroleum’s strategy to create shareholder value by pursuing high impact exploration opportunities. Through the use of the Rex Technology package, HiRex targets to screen between 20 to 40 opportunities per year before making investments in at least 3 concessions.

The Rex Technology package consists of 3 unique technologies - Rex Gravity, Rex Seepage and Rex Virtual Drilling. Rex Gravity and Rex Seepage are able to detect potential (oil) deposits using satellite acquired data while Rex Virtual Drilling is a software-based tool which relies on the phenomenon of resonance in seismic data to detect hydrocarbon deposits and predict oil quality as well as in-place volumes.

For more information, please click here

Prospects of the Group

Hibiscus Petroleum’s vision is to become a respected regional independent oil and gas company with a focus on conventional upstream oil and gas resources. Our mission is to build a rapidly growing exploration and production company with a balanced portfolio of oil and gas assets including:

Promising exploration permits that have a significant inventory of drillable prospects with a view to participating in at least three transformational drilling activities per year. We aim to build our oil and gas reserves through exploration drilling by focusing on activities in the Middle East, Norway and Australasia region where we currently have prospective resources in excess of 1.4billion bbl/boe.

Development assets where discovered oil and gas reserves are monetised through field development and where we can execute our projects in a timely and cost effective manner. Currently, we have the West Seahorse field and our oil discovery in GA South #1 in Oman as part of our field development inventory; and

Producing assets which generate sufficient cash to fund our future exploration and development activities while creating a sustainable and growing company without having to seek additional funding from shareholders.

Successful exploration and production companies continue to build reserves where the sum of the finding, development and production costs on a per barrel basis is less than the prevailing oil price. Our innovative approach to development projects and our cost effective and disciplined approach to the operation of producing assets is what would ultimately differentiate us from our peers and create a thriving business for the benefit of our shareholders.

We have stated our current mission as targeting about 100 million barrels of oil equivalent (“boe”) of 2P/2C reserves / resources and production levels of 10,000 boe/day. We are working hard to achieve these targets in several ways; through the development of our existing fields in one of which we potentially expect first oil by 1Q 2017 as well as by screening and bidding for producing assets where we believe we can continue to extract value from the asset. We have developed our processes for screening opportunities and valuing assets and have competed to acquire a number of assets across a broad range of geographies. We are also resolute in our vision of becoming a respected independent oil company in the region and will continue to develop and screen for opportunities that will allow us to generate steady cash flows.

BLOCK 50 OMAN CONCESSION

The key operations of Block 50 Oman are carried out under Masirah Oil Ltd (“Masirah”).Masirah’s agreements with the regulatory authorities in the Sultanate of Oman require all public disclosures to be approved by the Omani government. Hence the information that is disclosed herewith is only information that has been previously approved for release by the authorities. Below are extracts from approved press releases issued regarding our drilling campaign.

Masirah began drilling its 1st exploration well in Masirah North North #1 (“MNN #1”) on 25 November 2013 as part of its 2-well drilling programme in the Block 50 Oman concession. The prospect MNN #1 was selected for drilling after in-depth technical evaluation and verification using RVD, in addition to confirmations provided via conventional methodologies. The prospect is located in the northern area of the Block 50 Oman concession which is about 17,000 square kilometres in size.

On 19 December 2013, Masirah suspended operations on its 1st exploration well, MNN #1 for safety reasons, for further evaluation. The MNN #1 well was drilled to a total depth of approximately 1,000 metres below mean sea level. Mud losses in two carbonate sections of the well required early suspension of the operations although all key objectives of the well were met before suspension of the operations. A comprehensive data acquisition, coring and logging programme of the formations that were drilled was completed on 21 December 2013. Data analysis indicated presence of non-commercial hydrocarbons. Datasets acquired from the coring and logging programmes are being utilised to refine the geological understanding of the area.

On 30 December 2013, Masirah began drilling its second exploration well in GA–South #1 (“GAS #1”), located in the Block 50 Oman concession. On 3 February 2014, Masirah announced the successful reach of the well target depth in its 2nd exploration well to its final depth of more than 3,000 metres into the Cambrian formation. Hydrocarbons were discovered in several formations with good oil sample extracted.

On 6 March 2014, Masirah announced that during a 48-hour test, hydrocarbons were flowed to the surface and the well achieved light oil flow rate of up to 3,000 stock tank barrels per day (stb/d) with no water production. This is the first offshore oil discovery in the east of Oman after more than 30 years of exploration activities in that area.

On 2 December 2014, Masirah announced that it had commissioned a new 3D seismic survey in Block 50 Oman. The seismic survey commenced data acquisition activities in November 2014 and this is now completed. Data processing of the seismic data, including analysis with RVD is underway.

On 9 December 2014, Masirah and Hibiscus Petroleum delivered several presentations at the Offshore Development Oman 2014 Conference. Over 200 international and regional offshore oil and gas sector experts participated in this conference. Hibiscus Petroleum delivered a presentation regarding the execution of the Block 50 Oman offshore exploration project.

Since completion of the seismic acquisition, fast track seismic interpretation and full processing has been done. Masirah is currently conducting full seismic interpretation to identify and rank drillable prospects, and will carry out further technical studies on selected prospects.

RAK NORTH OFFSHORE CONCESSION

The team had received (from the previous operator of the field) access to 3D seismic data acquired in 1984 covering the Saleh field (which has producing wells and lies within, but is excluded from Lime’s concession), as well as some acreage within the concession boundaries. Whilst a preliminary prospect was identified last year in RAK North Offshore based on conventional evaluation, sequence stratigraphy and the application of RVD on 3D seismic, there is currently a need to review the results of the analysis as there are certain similarities between the sequence stratigraphy of our recently drilled MNN #1 well in Oman and the geology observed in the RAK North Offshore Concession area. Hence, as part of a risk mitigation plan, the drilling schedule in RAK North Offshore has been postponed temporarily pending careful study of all available data. Based on results of various studies done subsequently and given current uncertainties relating to oil price, discussions are on-going with the relevant authorities on the options that are available to the Company.

RAK SOUTH ONSHORE CONCESSION

Given the recent downturn in global oil prices, the fact that the tenure of the license has formally expired (without a request for an extension being submitted) and given that it has been difficult to secure a farm-in partner to take up some equity in this project, it is likely that as part of a portfolio rationalisation exercise, the Company shall formally relinquish this license back to the host government in the very near future.

SHARJAH EAST COAST CONCESSION

Zubara Petroleum Ltd (“Zubara”), a wholly-owned subsidiary of Lime, received the necessary extension to its Concession Agreement from the government of Sharjah to commence engineering and procurement activities leading to the drilling of an exploration well by the third quarter of 2015.

Zubara, which owns 100% of the Sharjah East Coast Concession, finalized the award of a well management services contract on 31 July 2014. Additionally, an Environmental Impact Assessment (“EIA”) as well as a site survey were scheduled for completion in the first quarter of 2015. However, given the economic conditions affecting the oil and gas industry, all work on the exploration well was placed on hold in the first quarter of 2015. Discussions with the host government are ongoing to seek an extension of the license agreement and a rescheduling of the drilling of the exploration well.

As it has always been the intention of Lime to share risks associated with the drilling of this concession, we continue efforts to farm-out interests in this concession. Provided the host government grants an extension to the license agreement, we hope to secure a farm-in partner by the fourth quarter of 2015 which should then allow drilling of the exploration well by the second half of 2016. It should be noted the well to be drilled in Sharjah is due for drilling by the end of 2015 and there is no certainty that the Government of Sharjah would consider an extension to our concession favorably. In the interim, we have taken the prudent step to write down the investment we have made in this concession.

NORWAY

Our entry into Norway was part of a strategy to diversify the geopolitical risk of our asset portfolio. The fiscal terms available to qualified young explorers operating in Norway are attractive and allow for a risk-managed approach in a business sector where high risk profiles and costly operations are usually unavoidable. The attractive fiscal terms offered under the Norwegian Petroleum Tax Act give Lime Petroleum Norway AS (“Lime Norway”) the opportunity to recover approximately 78% of eligible exploration expenditure, irrespective of whether discovery or production is achieved.

On 16 October 2015, Lime Norway, a company in which its jointly-controlled entity, Lime Petroleum Plc (“Lime”) is a shareholder, had informed the Company that it had participated in the drilling of exploration well 16/1-25S which commenced on 15 October 2015, to clarify the extent and size of the Rolvsnes discovery in North Sea licence PL338C.

On 24 November 2015, Lime Norway informed the Company that it will be participating in the drilling of exploration well 7130/4-1 on the Ørnen prospect in PL708 in the Barents Sea, and that drilling of the well commenced on 22 November 2015 using the semi-submersible rig Transocean Arctic. The planned total depth is approximately 2,630 metres below mean sea level and the drilling operation is expected to take approximately 60 days.

The 2015 drilling plans of Lime Norway are as follows:

License Rig Estimated Spud Date Operator
PL544 To be decided December 2015 / January 2016 Lundin

At this juncture, Lime Norway has advised that decisions to drill wells or relinquish licenses are expected to be made for PL498 and PL498B in the fourth quarter of 2015, similar to the timeline for the same determination for PL503, PL503B and PL503C.

FARMING OUT MIDDLE EAST CONCESSIONS

Our business strategy is founded on a risk-managed approach to exploration drilling. Therefore, our preference is for the Company to participate in exploration wells where some of the risks are shared with other parties. Consistent with this strategy, efforts are underway to farm-out a portion of Lime’s interests in the Sharjah and RAK South Onshore concessions. Additionally, in view of the costs associated with drilling a well in the RAK North Offshore concession, an equity farm-out on this block may also be considered.

3D Oil/VICP57/VICL31

Hibiscus Petroleum’s wholly-owned subsidiary, Carnarvon Hibiscus Pty Ltd (“CHPL”), as operator, is responsible for the day-to-day management of work activities within VIC/P57 and VIC/L31, affording us a high level of financial and operational control in these concessions.

In the VIC/P57 concession, following exercising an option to acquire the interest in VIC/P57 held by HiRex (Australia) Pty Ltd (“HiRex (Australia)”), Hibiscus Petroleum Group (the “Group”)’s interest is 78.3%. CHPL had on 17 November 2014 acquired additional interest in VIC/L31, bringing its total interest held in VIC/L31 to 100%.

In October 2014, CHPL signed a rig sharing agreement with Australia’s Origin Energy Resources (“Origin”) to assume the services of the Seadrill West Telesto drilling rig, an independent leg cantilever jack-up rig, to spud and drill the Sea Lion exploration well after Origin’s drilling activities. The drilling of the Sea Lion exploration well is estimated to take up to 30 days.

In October 2015, CHPL announced that the West Telesto drilling rig was demobilized from its previous assignment and was handed over to CHPL on 20 October 2015. Following a 196 mile tow from its original location and an incident-free onsite preparation, CHPL announced that it commenced drilling operations at the Sea Lion-1 exploration well on 26 October 2015.In November 2015, CHPL announced that the drilling program was progressing safely and had reached total planned depth of the well on 9 November 2015. Formation evaluation testing was then performed by open-hole wireline logs to further define quality of the reservoir(s) and the productivity of each of the 6 zones of interest that indicated potential hydrocarbon bearing reservoirs.

On 11 November 2015, CHPL announced that the wireline evaluation and sampling of formation fluids over the 6 zones of interest had been completed. The wireline work confirmed that no zones of commercial hydrocarbons were encountered in the Sea Lion-1 well. The well was plugged and abandoned and the rig was then reassigned to Origin on 16 November 2015, 3 days in advance of the planned 30 day drilling program. While unsuccessful, the Sea Lion well was performed without any recordable safety or environmental incidents and ahead of schedule.

One additional obligation well in VIC/P57 is required by January 2018 to retain the lease. Discussions with the regulatory authorities will be held in early 2016 to request an extension of the license by 1 year to January 2019 in order to provide CHPL additional time to assess the results of the Sea Lion well before making a commitment to drill another exploration well in the license.


West Telesto being towed on a Heavy Lift Vessel into Port Philip Bay, Melbourne

On 9 November 2015, Hibiscus Petroleum announced that it had executed a binding term sheet on 9 November 2015 to acquire 100% of the outstanding shares of Hydra Energy Holdings Pty Ltd (“Hydra Energy”). Subject to shareholder and regulatory approvals, and the satisfaction of conditions precedent to the binding term sheet, Hydra Energy will become a wholly-owned subsidiary of Hibiscus Petroleum. The addition of Hydra Energy and their portfolio of discovered oil fields offshore Australia will increase Hibiscus Petroleum’s 2P/2C resources by 15 – 17 million barrels (“mmbbl”) and also provides exploration upside. The acquisition will provide Hibiscus Petroleum with a significantly increased reserve base in Australia and allow shareholders to capitalise on the synergies that exist between the organisations and the asset bases.

The purchase price for the acquisition will be the fair market value of Hydra Energy as determined by an independent and competent valuer. The transaction will be satisfied through the issue of new Hibiscus Petroleum shares at an issue price to be determined on the date that the fair market value of Hydra Energy is determined. Both the Hibiscus Petroleum and Hydra Energy Board of Directors are working together to complete the transaction by first half of 2016. The management of Hibiscus Petroleum has provided an irrevocable undertaking on behalf of 17% of Hibiscus Petroleum shares on issue to vote in favour of the transaction. The management of Hibiscus Petroleum and Hydra Energy shareholders have agreed to a lock up period post consummation of the transaction and the transaction is structured such that it is not expected to trigger a mandatory general offer.

Hydra Energy is incorporated in Australia and has equity interests in 7 operated Petroleum Titles located in the Carnarvon Basin, offshore North West Australia as summarized below:

Petroleum Title Field/Discovery, Prospect Oil/Gas Hydra Energy Interest
WA-41-RCorowa, Corowa ExtensionOil66.67%
WA-8-L*AmuletOil37.3684%
TL/2 & TL/7**TauntonOil90.00% / 87.526%
WA-47-RSage, Sage DeepOil100.00%
WA-46-RTuskOil80.00%
WA-52-ROkapiOil100.00%
* Binding Sale & Purchase Agreement executed. Completion including transfer of Operatorship is subject to the terms of the joint operating agreementand regulatory approvals. ** Binding Sale & Purchase Agreements executed, to acquire an addtional 66.834% participating interest in TL/2 and an addtional 83.369% participating interest in TP/7. Completion including transfer of Operatorship subject to the terms of the joint operating agreements and regulatory approvals.

The 7 Titles held by Hydra Energy are estimated to have 15 – 17 mmbbl net to Hydra Energy. On completion of this transaction, Hibiscus Petroleum’s net 2P/2C Australian oil resource base would increase from 8 mmbbl (West Seahorse alone) to 23 – 25 mmbbl. Combined with the 2P/2C resources that are in the midst of being secured as part of the recent Anasuria Cluster transaction (UK sector of the North Sea), Hibiscus Petroleum’s global net 2P/2C resource base would be approximately 47 million barrels of oil equivalent (“mmboe”) following the completion of this acquisition.

In addition to the equity transaction, Hydra Energy’s management, Global Natural Resources Investments (“GNRI”) and Hibiscus Petroleum’s management are finalizing a non-equity based USD20 million debt facility to underpin the combined companies’ capital requirements. This facility will be utilized to fund existing operational commitments and also allows Hibiscus Petroleum to explore new business opportunities.

CHPL had previously selected an all-offshore solution consisting of a Mobile Offshore Production Unit (“MOPU”), a subsea pipeline and a Floating Storage and Offloading (“FSO”) vessel for the West Seahorse development. The Hydra Energy assets have the technical and commercial advantages of utilizing the same concept of the relocatable production infrastructure that is being considered for the West Seahorse development although design of the facilities will need to be re-evaluated with the addition of the Hydra Energy assets. The inclusion of the Hydra Energy assets into Hibiscus Petroleum’s portfolio provides a basis for optimisations and synergies that should significantly reduce Hibiscus Petroleum’s development costs per barrel in a low oil price environment.

Hibiscus Petroleum together with CHPL plan to assess the opportunity for an accelerated development of the combined Hibiscus Petroleum and Hydra Energy assets. Plans for the development of the Australian assets should be finalized during the first half of 2016. Contracts previously tendered will be re-tendered once the development concept is finalized in order to achieve the reduced pricing that should be available from the industry in 2016.

From a sub-surface perspective, a further independent assessment was performed by a third party expert, Gaffney, Cline & Associates (“GCA”) and delivered in early January 2014. The updated assessment will be used to secure financing for the project.

From a regulatory perspective, we believe the West Seahorse project is well-positioned. In October 2013, the Department of Sustainability, Environment, Water, Population and Communities of the Australian government approved our Environment Protection and Biodiversity Conservation Act referral as a non-controlled action (no threat to items of national significance). In November 2013, NOPTA approved the Field Development Plan for West Seahorse. In December 2013, NOPTA awarded CHPL (on behalf of the VIC/P57 Joint Venture) a production license VIC/L31 over the West Seahorse oilfield.

First volumes of commercial production from the VIC/L31 West Seahorse field are still expected in 2017, subject to a reassessment of the development concept for the combined Hibiscus Petroleum and Hydra Energy assets and subject also to the declaration of FID in the first half of 2016.

ANASURIA CLUSTER

On 6 August 2015, Hibiscus Petroleum, via its indirectly wholly-owned subsidiary, Anasuria Hibiscus UK Ltd with Ping Petroleum UK Ltd, entered into sale and purchase agreements to each acquire 50% of the entire interests of Shell UK Ltd (“Shell UK”), Shell EP Offshore Ventures Limited (“Shell EP”) and Esso Exploration and Production UK Limited (“Esso E&P”) in the Anasuria Cluster of oil and gas fields effective 1 January 2015 for a consideration of USD52.5 million. The acquisition of the Anasuria Cluster is subject to, amongst others, regulatory approvals, and third party consents, including approvals from the UK government and Hibiscus Petroleum shareholders.

The Anasuria Cluster is located approximately 175 kilometres east of Aberdeen in the UK Central North Sea and consists of:

  • 100% interest in the Guillemot A field and the related field facilities;
  • 100% interest in the Teal field and the related field facilities;
  • 100% interest in the Teal South field and the related field facilities;
  • 38.65% interest in the Cook field and the related field facilities; and
  • 100% ownership in the common infrastructure known as the Anasuria Floating Production Storage and Offloading unit and the related equipment ("Anasuria FPSO").

The cluster represents an attractive, geographically focused package of operated interests in producing fields and associated infrastructure. The assets have a proven and producing resource base which provides a platform for further development. A number of incremental development and exploration opportunities exist within the licence areas which are expected to generate significant incremental value in the medium term.


Anasuria FPSO in the Central North Sea during a crude oil offtake

During the current quarter, the Company has been working with Ping Petroleum Limited (“Ping Petroleum”) to establish the joint operating company, Anasuria Operating Company Limited (“AOC”) in Aberdeen. The onshore organisation required to take over operatorship of the assets from Shell UK has been established in a newly opened office in Aberdeen. It intends to outsource the day-to-day operations and maintenance of the assets to Petrofac Facilities Management (“Petrofac”), a substantial Contract Operator of North Sea assets. The AOC office has hence been co-located in Petrofac’s office.

The activities currently underway include:

  • Submission of documentation to the UK regulatory bodies to obtain approval of AOC as Operator of the Anasuria Cluster and for transfer of the production licenses from Shell UK, Shell EP and Esso E&P to Anasuria Hibiscus UK Limited and Ping Petroleum UK Limited (a wholly-owned subsidiary of Ping Petroleum);
  • Submission of the facility safety case and oil pollution emergency plan by Petrofac;
  • Recruitment of personnel required to take over operatorship of the assets from Shell UK;
  • Migration of the operating documentation and systems of work from Shell UK to Petrofac; and
  • Establishment of a long term facilities management agreement with Petrofac.

It is currently estimated that the transition of operations from Shell UK to AOC will occur on 31 January 2016 subject to obtaining approvals for the transaction from the UK government and Hibiscus Petroleum shareholders. Completion of the transaction occurs on the date of transfer of operatorship with financial close shortly thereafter.

AWARD OF THE SOUTH EAST RAS EL USH CONCESSION IN EGYPT

Gulf Hibiscus Limited (“Gulf Hibiscus”), the Company’s wholly-owned subsidiary, has been awarded the South East Ras El Ush concession (“Block 2”) in Egypt by the Ganoub El Wadi Petroleum Holding Company (“Ganope”), an entity of the Ministry of Petroleum, Arab Republic of Egypt (“Award of the Concession”).

The award was made pursuant to the successful submission of a bid by Gulf Hibiscus, together with its partner, Pacific Oil Limited6 (“Pacific Oil”), for a joint equal ownership of the concession.

Pacific Oil will be the operator of the concession, to leverage on its management team’s experience in Egypt. Block 2 is an offshore exploration block located in the southern Gulf of Suez, the most prolific petroleum province in Egypt. The block covers an area of 68 square kilometres with water depth of up to 75 metres, and is surrounded by development leases. Block 2 also contains the discovered West Ashrafi field, which is included in the above Award of the Concession, and may be developed with a production tie-in to the nearby existing onshore infrastructures. Two wells previously drilled in the West Ashrafi field had tested commercial oil and gas.

The award is subject to the execution of a definitive agreement. Gulf Hibiscus’ financial exposure to undertake the minimum work commitment is estimated to be approximately USD8 million over the first 4 years (first exploration phase).

Gulf Hibiscus is currently preparing the documentation required to participate in this concession.


Location of South East Ras El Ush, Block 2.

Milestones

CORPORATE CALENDAR FOR HIBISCUS PETROLEUM BERHAD (Hibiscus Petroleum)

2015

4 September 2015 19 August 2015 6 August 2015 4 August 2015
CHPL Acquires HiRex Australia as a Wholly Owned Subsidiary Company

The transaction contemplated in the Proposed Call Option (i.e. CHPL’s acquisition of 100% of the entire issued and paid-up share capital of HiRex Australia) has now been completed. Accordingly, HiRex Australia is now a wholly-owned subsidiary company of CHPL.
Lime Norway Acquires an Additional License

Lime Norway acquires a 30% stake in PL410 in the North Sea, subject to the approval of the relevant authority.
Anasuria Hibiscus Enters Into Conditional Agreements to Acquire Anasuria Cluster

Ping Petroleum Limited (Ping Petroleum) and Anasuria Hibiscus UK Limited had entered into two conditional agreements to acquire the Anasuria cluster of oil and gas fields and the Anasuria FPSO, subject to regulatory approvals amongst others.
Gulf Hibiscus Offered Interest in Egyptian Block

Gulf Hibiscus is awarded the South East Ras El Ush concession (‘Block 2’) in Egypt together with Pacific Oil Limited, subject to the execution of a definitive agreement, who has joint ownership of the concession, will be the operator of the concession.
3 August 2015 16 April 2015 1 April 2015 23 March 2015
Lime Norway Acquires 2 Additional Licenses

Lime Norway acquires 50% stake in PL760 and PL760B each, subject to approval from the relevant authorities.
Lime Norway Acquires an Additional License

Lime Norway acquires 30% stake in a new license (PL544) with operator Lundin, subject to authority approvals.
Lime Norway Increases Stake in Existing License

Lime Norway increases stake in existing license PL616 from 5% to 15% (subject to regulatory approval).
Lime Norway Secures Enlarged Financing Facility

Lime Norway secures enlarged financing facility for its 2015 drilling programme, increasing from NOK300 million to NOK700 million, in addition to total capital injection of NOK282 million from its shareholders to date.
17 February 2015 21 January 2015
Lime Norway Acquires 3 Additional Licenses

Lime Norway acquires an additional 20% interest in 3 licenses (PL591, PL591B and PL 591C), subject to regulatory approval.
Lime Norway Acquires an Extension to its Existing Licenses

Lime Norway receives PL591C license award, an extension of its current PL591 and PL591B licenses.

2014

7 October 2014 15 August 2014 10 July 2014 7 July 2014
Lime Norway Acquires 2 Additional Licenses

Lime Norway completes acquisition of a 5% stake each in PL591 and PL591B.
CHPL Increases West Seahorse stake to 100%

CHPL exercises option to acquire the remaining VIC/L31 interest from 3D Oil thereby increasing its interest from 50.1% to 100%.
Hibiscus Appoints UBS AG and Maybank Investment Bank as New Advisors

Hibiscus Petroleum appoints UBS AG and Maybank Investment Bank Berhad to act as the Company’s international and domestic advisors in support of the Company's strategic plans as it embarks on its next phase of growth.
Hibiscus Increases Interests in West Seahorse and Sea Lion

  • Hibiscus Petroleum Group signs binding agreements, increasing the Group’s effective stake to in both VIC/L31 Production License (West Seahorse discovery) and VIC/P57 Exploration Permit
  • HiRex Petroleum Sdn Bhd receives an option to acquire 20% equity in VIC/P57 Exploration Permit from 3D Oil.
2 July 2014 12 May 2014 6 March 2014 21 February 2014
CHPL’s West Seahorse Project Granted Access to Australian Government Facilitation Services

The Australian Government grants Carnarvon Hibiscus Pty Ltd’s (CHPL) West Seahorse project access to the Federal Government Major Project Facilitation services as recognition of the project’s national strategic significance.
CARNARVON HIBISCUS AND HIREX SIGN HEADS OF AGREEMENT WITH 3D OIL LIMITED (3D OIL)

Carnarvon Hibiscus, HIREX and 3D Oil sign a Heads of Agreement to undertake various proposed transactions, more specifically;
  • HIREX to receive an option to acquire a 20% interest in VIC/P57 from 3D Oil;
  • Carnarvon Hibiscus to increase its stake in VIC/P57 by an additional 5% to 55.1%;
  • Carnarvon Hibiscus to fully acquire the Britannia rig for future conversion into a MOPU; and
  • Carnarvon Hibiscus to secure an option to increase its stake in VIC/L31
SUCCESSFUL FLOW TEST BY MASIRAH in EAST OF OMAN

Masirah announces hydrocarbons were flowed to the surface and the GA-South #1 well achieved light oil flow rate of up to 3000 stock tank barrels per day with no water production.
Lime Norway Acquires 14th Norwegian License

Lime Norway acquires a 20% stake in PL 509CS in the North Sea from North Energy.
3 February 2014 21 January 2014 9 January 2014
Masirah’s GA-South #1 Well in Block 50 Oman Discovers Oil FOR the FIRST TIME AFTER MORE THAN 30 YEARS

Masirah discovers light oil in GA-South #1, the first offshore oil discovery in the east of Oman after more than 30 years of exploration activities.
Lime Norway Offered Interest in 5 Norwegian Licenses

Lime Norway awards five new offshore licenses in the 2013 Awards in Predefined Areas (APA 2013) licensing round in Norway.
Capital injection of USD8.05 million into Lime

Gulf Hibiscus Ltd injects USD8.05 million in two tranches in Lime Norway to partly finance its exploration wells commitment.

2013

30 December 2013 5 December 2013 3 December 2013 25 November 2013
Masirah Spuds 2nd Well in Block 50 Oman

Masirah commences drilling of its 2nd exploratory well at GA-South #1 in Block 50 Oman.
VIC/P57 Joint Venture Awarded a Production License VIC/L31

NOPTA of Australia awards the VIC/P57 joint venture with a Production License VIC/L31 over the West Seahorse oilfield in the offshore Gippsland Basin, Victoria, Australia.
Lime Norway Acquires 7th License in Norway

Lime Norway signs agreement with North Energy to acquire 20% stake in a new license, PL 509, in Norway.
Masirah Spuds 1st Well in Offshore Oman

Lime’s subsidiary, Masirah begins drilling Masirah North North #1 in Block 50 Oman concession as part of a 2-well exploratory drilling campaign.
18 November 2013 14 November 2013 11 October 2013 3 September 2013
Lime Norway Acquires 2 Additional Production Licenses

Lime Norway acquires 2 additional production licenses, PL 707 and PL 708, in the Norwegian Continental Shelf (NCS) from North Energy.
Carnarvon Hibiscus Pty Ltd Receives Field Development Plan Approval

Carnarvon Hibiscus Pty Ltd (Carnarvon Hibiscus) receives approval of the Field Development Plan (FDP) for West Seahorse from the National Offshore Petroleum Titles Administrator (NOPTA) of Australia.
Launch of New Convertible Redeemable Preference Shares (CRPS-2013)

Announces private placement of up to RM500 million new CRPS-2013 (Proposed Private Placement of CRPS- 2013).
Lime Norway’s Acquisition of 4 Production Licenses Approved

Lime Petroleum Norway AS (Lime Norway) receives the Norwegian Ministry of Petroleum and Energy’s approval to acquire 4 production licenses from North Energy ASA (North Energy).
19 August 2013 17 July 2013 1 July 2013 17 June 2013
Masirah Oil Ltd Awards Drilling Contract

Lime Petroleum Plc’s (Lime) subsidiary, Masirah Oil Ltd (Masirah) awards drilling rig contract to Aban 7 Pte Ltd for its two-well drilling campaign in Block 50 Oman.
Audited Financial Report for 2012/2013

Release of Audited Financial Report for the financial year ended 31 March 2013.
HIREX Appoints Executive Director

Schlumberger veteran, Ainul Azhar Ainul Jamal joins HIREX as Executive Director.
HIREX Receives USD10 million Commitment

Triax Ventures Corp agreed to invest USD10 million for a 15% equity interest in HIREX.
27 May 2013 17 April 2013 22 March 2013 21 March 2013
3D Oil Secures Exploration Permit in Tasmania

Hibiscus Petroleum’s partner in Australia, 3D Oil, was awarded a new exploration permit, T/49P in the offshore Otway Basin of Tasmania.
Lime Norway Increases Selection up to 6 Concessions to be Acquired

Lime Norway increased its selection of up to six production licenses to be obtained from North Energy under a revised agreement.
Lime Norway Executes Intellectual Property (IP) License Agreement

Lime Norway obtained the right to use the Rex Technology package in the NCS for a minimum period of 3 years.
Formation of HiRex Petroleum Sdn Bhd (HIREX) Joint Venture

Collaboration by Rex South East Asia Ltd and Orient Hibiscus Sdn Bhd to pursue high impact exploration assets in the Asia Pacific utilising Rex technologies.
14 February 2013 8 January 2013
Lime Petroleum Norway AS (Lime Norway) Obtains Pre-Qualification

Lime Norway was pre-qualified as an oil & gas player in Norway and can directly assume participating interests in partner-operated licenses in the Norwegian Continental Shelf (NCS).
Completion of 3D Oil and VIC/P57 Transactions

Carnarvon Hibiscus Pty Ltd became the operator and 50.1% owner of the VIC/P57 permit area in the Bass Strait, Australia and 13.0% shareholder of 3D Oil.

2012

19 December 2012 26 September 2012 14 August 2012 2 & 3 August 2012
Shareholders' Approval of the 3D Oil Transactions

Received shareholders' approval of the 3D Oil Transactions
2nd Annual General Meeting & Shareholders' Approval of Private Placement of CRPS Proposed Acquisition of 3D Oil Limited (3D Oil) Shares and interest in Permit

Signed two agreements with Australian Securities Exchange listed 3D Oil for a 13.0% equity interest in 3D Oil and a 50.1% farm-in interest in exploration permit VIC/P57. (transaction referred to as 3D Oil Transactions)
Launch of Proposed Private Placement of Convertible Redeemable Preference Shares (CRPS)

Announced proposed private placement of up to RM210 million new CRPS and entered into conditional subscription agreements with six investors for the subscription of CRPS totalling RM74.5 million.
24 July 2012 23 May 2012 2 May 2012 18 April 2012
Audited Financial Report

Release of Audited Financial Report for the financial year ended 31 March 2012.
Increased Stake in Masirah Oil Ltd (Masirah)

Lime's subsidiary, Lime Petroleum Limited (Lime BVI) executed a revised Masirah Shareholders' Agreement with Petroci Holding, increasing Lime BVI's stake in Masirah from a potential 35% to 64%.
Concessions in Norway

Lime entered into agreements with North Energy ASA to secure interests in 4 concessions in Norway.
Completion of the Qualifying Acquisition.
10 April 2012 21 March 2012 16 February 2012
New Onshore Ras Al- Khaimah Concession and Revised Terms of Existing Ras Al- Khaimah Offshore Concession

Lime's wholly-owned subsidiary, Baqal Petroleum Ltd, signed an Exploration and Production Sharing Agreement (EPSA) with the government of Ras Al-Khaimah in the United Arab Emirates for an onshore concession.

Lime's subsidiary, Dahan Petroleum Ltd, executed revised EPSAs for RAK North Offshore concession, located offshore in Ras Al-Khaimah.
Shareholders' Approval of the Qualifying Acquisition

Received shareholders' approval of the Qualifying Acquisition.
Securities Commission's Approval of the Qualifying Acquisition

Received the Securities Commission's approval of the Qualifying Acquisition.

2011

24 October 2011 25 July 2011 30 June 2011 20 April 2011
Signing of QualifyingAcquisition Agreements

Hibiscus Petroleum's wholly-owned subsidiaries, Gulf Hibiscus Limited and Hibiscus Oilfield Services Limited, signed various agreements in relation to its Qualifying Acquisition, being a 35% equity interest in Lime Petroleum Plc (Lime) (transaction referred to as Qualifying Acquisition)
Listing on the main market of Bursa Securities

Listed on the Main Market of Bursa Securities under Special Purpose Acquisition Company (SPAC) listing rules (Stock code: 5199/HIBISCS).
Launch of IPO Prospectus

Launched the IPO Prospectus.
Securities Commission's Approval of Initial Public Offering (IPO)

Received the Securities Commission's approval for Hibiscus Petroleum's flotation on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities).