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.

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, South Asia, East Asia and Oceania regions.

On 18 April 2012, Hibiscus Petroleum completed its first acquisition, a 35% equity stake in Lime Petroleum Plc (Lime), which has four concessions in the Middle East - RAK North Offshore and RAK Onshore in Ras Al Khaimah in the United Arab Emirates (UAE), Sharjah in the UAE, and Block 50 in Oman. Subsequently, Lime secured access to a further four concessions in Norway, which are subject to fulfilment of certain conditions precedent in the Transaction Agreements. The Middle East and Norway concessions are at early to advanced exploration stages.

On 14 August 2012, the Company announced plans to acquire a 13% stake in 3D Oil Limited (3D Oil), an Australian Securities Exchange-listed company and a 50.1% stake in its VIC/P57 permit to obtain rights to explore the asset, located in the prolific Gippsland Basin off south- eastern Australia. The area includes the discovered West Seahorse field.

The Company seeks to develop a balanced portfolio of assets which are in geographically diverse locations.

Click here to play the video of our qualifying acquisition.

Organization Chart

Board of Directors

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Dr Kenneth Gerard PereiraManaging Director

Dr Rabi Narayan BastiaNon-IndependentNon-Executive Director

Zainol Izzet bin Mohamed IshakSenior IndependentNon-Executive Director

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Roushan ArumugamIndependentNon-Executive Director

Tay Chin KwangIndependentNon-Executive Director

Zainul Rahim bin Mohd ZainNon-Independent Non-Executive Chairman

Zainul Rahim bin Mohd Zain, a Malaysian aged 60, was appointed to the Board on 14 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. He currently sits on the boards of UKM Holdings Sdn Bhd, Bank Pembangunan Malaysia Bhd, Petronas Carigali Sdn Bhd, Camco Clean Energy Plc Ltd, Camco South East Asia Ltd, and CSEA Clean Energy Sdn Bhd.

Dr Kenneth Gerard PereiraManaging Director

Dr Kenneth Gerard Pereira, a Malaysian aged 55, has been the Managing Director of Hibiscus Petroleum Berhad 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 Institute of Technology, 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 25 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 (Sapura Energy) 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 (Crest Petroleum) and he became the Chief Operating Officer (COO) of SapuraCrest Petroleum Bhd, an oil and gas services public company listed on the Main Market of Bursa Malaysia Securities Berhad.

In 2008, 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, 3D Oil Limited and other various private companies. In July 2012, he was appointed Chairman of the board of Lime Petroleum Plc.

Dr Kenneth is also currently the Chairman of the Development Committee of the Malaysian Hockey Confederation.

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.

Zainol Izzet bin Mohamed IshakSenior IndependentNon-Executive Director

Zainol Izzet bin Mohamed Ishak, Malaysian aged 52, 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.

Izzet holds a Bachelor of Arts in Actuarial Studies from Macquarie University, Sydney and a Masters in Business Administration from Cranfield Institute of Technology, United Kingdom.

In his early career, Izzet served in several local and international companies including American Express, Seccolor (M) Industries, Kassim Chan & Co and Hymans Robertson & Co, Consulting Actuaries, London.

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 CEO of Sapura Digital Sdn Bhd and was subsequently appointed to lead Sapura Energy Group in 1997. He was appointed CEO of SapuraCrest Petroleum Bhd in July 2003 pursuant to the acquisition of Crest Petroleum Berhad by Sapura Technology Bhd from Renong Berhad.

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

Datin Sunita Mei-Lin RajakumarIndependentNon-Executive Director

Datin Sunita Mei-Lin Rajakumar, a Malaysian aged 44, was appointed to the Board on 14 December 2010. She is also Chairman of the Company’s Audit and Risk Management Committee as well as a member of the Nominating and Remuneration Committees.

Datin Sunita graduated with a Bachelor of Law (Honours) from the University of Bristol, United Kingdom. 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 Division. 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.

Since 2005, she has also been the Director and owner of Surprise Voice Sdn Bhd, the Executive Producer of Malaysia's first opera which premiered in March 2006.

Datin Sunita is presently the Principal and Director at Artisan Encipta, a position that she has held since 2002. It is now an organisation which provides consulting services 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.

Presently, Datin Sunita serves as a trustee of the following charity foundations: Yayasan Seni, Yayasan myNadi and Hai-O Foundation at Hai-O Enterprise Berhad. She is also the chairman of the Audit Committee at Hai-O Enterprise Berhad and holds directorships in Hai-O Enterprise Berhad and Caring Pharmacy Group Berhad (as Chair of the Board of Directors).

Roushan ArumugamIndependentNon-Executive Director

Roushan Arumugam, a Malaysian aged 41, 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.

Roushan holds a MA 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, United Kingdom; and a MA in Law from the University of Bristol, United Kingdom.

Roushan commenced work in 1995 as an Internal Systems Risk Management Consultant at Price Waterhouse, London. In 1997, he joined Caspian Securities Limited as an Analyst, Emerging Markets Equity Research. After completing an MBA, 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 Division at Nomura Advisory Services Sdn Bhd.

Since September 2005, Roushan has been an Investment Consultant to the Arumugam Family Office. He also manages Littleton Holdings Pte Ltd., an investment vehicle.

Currently, 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 47, was appointed to the Board on 14 June 2012. He is a member of the Company’s Audit & Risk Management Committee.

He is a Certified Public Accountant and is a fellow member of the Institute of Certified Public Accountants of Singapore. Chin Kwang currently holds the position of Finance Director of Ezra Holdings Limited, a leading offshore contractor and provider of integrated offshore solutions for the oil and gas industry listed on the Singapore Exchange. He is also a director of various companies in countries such as Singapore, Thailand, Norway and Nigeria.

Chin Kwang started his career with Ernst & Young in Singapore and currently has over 23 years of experience in various accounting, finance management and business advisory functions across a broad spectrum of industries. His wealth of experience in corporate and business structuring, merger and acquisition and corporate finance has empowered him to excel in leadership positions throughout his career.

Management Team

Dr Kenneth Gerard PereiraManaging Director

Joyce Theresa Sunita VasudevanChief Financial Officer

Mark John PatonChief Business Development Officer

Stephen DechantChief Development Officer

Dr Pascal Josephus Petronella HosHead of Petroleum Engineering

David Jayakumar RichardsHead of Geoscience / Geology

Christopher Russell DyasHead of Projects

Azleen Rosemy AhmadGeneral Manager, Corporate Finance

Dr Kenneth Gerard PereiraManaging Director

Dr Kenneth Gerard Pereira, a Malaysian aged 55, has been the Managing Director of Hibiscus Petroleum Berhad 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 Institute of Technology, 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 25 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 (Sapura Energy) 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 (Crest Petroleum) and he became the Chief Operating Officer (COO) of SapuraCrest Petroleum Bhd, oil and gas services public company listed on the Main Market of Bursa Malaysia Securities Berhad.

In 2008, 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, 3D Oil Limited and other various private companies. In July 2012, he was appointed Chairman of the board of Lime Petroleum Plc.

Dr Kenneth is also currently the Chairman of the Development Committee of the Malaysian Hockey Confederation.

Joyce Theresa Sunita VasudevanChief Financial Officer

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, 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 and currently sits on the boards of Hibiscus Upstream Sdn Bhd, Orient Hibiscus Sdn Bhd, Oceania Hibiscus Sdn Bhd, Hibiscus Oilfield Services Limited, Gulf Hibiscus Limited, Carnarvon Hibiscus Pty Ltd, Lime Petroleum Limited, Zubara Petroleum Limited and Baqal Petroleum Limited.

Dr Pascal Josephus Petronella HosHead of Petroleum Engineering

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 a 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 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 and sits on the board of Dahan Petroleum Limited.

David Jayakumar RichardsHead of Geoscience / Geology

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 acreage evaluations in Pearl River (China), Taranaki (New Zealand), Potwar (Pakistan), Godavari (India) and Thai Basins 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 was as Senior Geologist with Newfield Sarawak Malaysia Inc.

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

David joined the Company on 5 October 2011.

Christopher Russell DyasHead of Projects

Christopher Russell Dyas, a British national aged 55, is the Head of Projects. He graduated with Master of Science degree in Thermal Power from Cranfield Institute of Technology, UK and Master in Business Administration (MBA) at the Cranfield School of Management.

Chris has 30 years of engineering and project related experience. He also has contractual and financial experience with skills in evaluating, companies, projects, and developing business plans. Chris started his career in 1983 with Cooper Energy Services (now a subsidiary of Rolls-Royce) heading the testing of turbomachinery used primarily in the oil and gas industry where he led a small team of engineers, technicians and QA/QC personnel. He also undertook the build of turbomachinery 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 offshore facilities and process systems. He spent time offshore during the commissioning of the Brae B platform and was responsible for identifying facilities and system problems in the early stages of production.

Following an MBA in 1990, he worked with Atlantic Power and Gas and Wood Group in Scotland and was at the forefront of risk - reward based contracting in the offshore oil and gas services sector. In Wood Group Gas Turbines, as Business Development and Marketing Manager he was the focal point in bidding onshore and offshore maintenance contracts internationally for the group and in 2000, he was 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, where he was engaged in the bidding and execution of several brownfield and greenfield projects related to oil and gas services, and led a project in India to refurbish offshore platforms.

Chris joined the Group on 1 January 2012.

Azleen Rosemy AhmadGeneral Manager, Corporate Finance

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. 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 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 (SapuraCrest) 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 & 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.

Azleen joined the Company on 15 February 2012.

Stephen DechantChief Development Officer

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 has over 30 years’ experience in the oil and gas industry in a career dedicated to managing large offshore projects globally including Brazil, Nigeria, Angola, Australia, Gulf of Mexico and Malaysia. For the past 16 years, he has been involved in the management of highly complex, capital intensive deepwater projects.

His expertise includes strong leadership skills with a proven ability to assemble very strong management teams, overall project execution planning, project controls, contracting strategy, interface management and execution of both conventional and fast-track projects.

A recent highlight was Steve’s senior project management role on the Kikeh Project, the first deepwater project in Malaysia. Steve joined the Kikeh Project shortly after the Kikeh discovery and led all phases of the USD2 billion development which was completed in less than 5 years from discovery.

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

Mark John PatonChief Business Development Officer

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 as 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 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 where he remained until he joined Hibiscus Petroleum in March 2013.

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%

The Lime Qualifying Acquisition

On 24 October 2011, the Group, via our wholly-owned subsidiary Gulf Hibiscus Limited (Gulf Hibiscus), signed a conditional share subscription agreement to acquire a 27.2% equity stake (by way of a new issue of shares) in Lime for a cash consideration of USD50 million. Gulf Hibiscus also executed a conditional share purchase agreement with Lime's major shareholder, Rex Oil & Gas Limited (Rex), for the acquisition of a further 7.8% equity stake in Lime from Rex for a cash consideration of USD5 million. In addition, it was agreed that another USD5 million would be paid to Rex if a discovery of hydrocarbons is made and declared to be commercial before 31 December 2013 by an independent competent expert.

The Lime transaction comprised several components which made it an attractive investment opportunity.

Firstly, it provides us with an opportunity to access high-potential acreage in the prolific petroleum basins of the Middle East (at the time of execution of the transaction agreements, Lime held concession rights to three assets located in Oman and the United Arab Emirates (UAE)).

Secondly, these concessions were secured with minimal work commitments, with no obligation to drill exploration wells.

Thirdly, the Project Management and Technical Services Agreement (PMTSA) executed between Lime and our wholly-owned subsidiary, Hibiscus Oilfield, allows us to contribute in a meaningful way towards the attainment of the joint venture's business objectives (it provides Hibiscus Petroleum with project management control of Lime's existing and future oil and gas concessions in the Middle East).

Finally, the Lime acquisition also gave the Group exclusive access to proprietary technologies from Rex (comprising Rex Gravity, Rex Seepage and Rex Virtual Drilling which help to better define the potential presence of liquid hydrocarbons in prospects prior to drilling), for fifteen countries in the Middle East.

Name of Concession Companies Concession rights in oil and gas exploration assets
Dahan Petroleum Ltd (Dahan)

Zubara Petroleum Ltd (Zubara)

Masirah Oil Ltd (Masirah)

Lime Petroleum Norway ASA (Lime Norway)

Baqal Petroleum Ltd (Baqal)
RAK North Offshore Concessions in Ras Al Khaimah

Sharjah Concession in Sharjah

Block 50 Oman Concession in the Sultanate of Oman

PL503 (Valberget), PL518 (Zapffe), PL526 (Vågar), PL530 (Heilo) in Norway

RAK Onshore in Ras Al Khaimah

Click here to play the video of our qualifying acquisition.

Overview of the RAK North Concession - DAHAN

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

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.

Current activity: In 2010, a 2D seismic campaign was launched by Rex Oil and Gas to identify potential prospects. Based on this initial seismic campaign, Lime Petroleum concluded an additional campaign of 144 km2 of 3D and 147 km of 2D seismic.

Overview of the RAK Onshore Concession - BAQAL

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

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, one of the emirates of the UAE.

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.

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

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

Location: The concession area is located on the east coast of Sharjah and is divided into 2 areas, separated by the Fujairah block. The previous concession holder was Matco Inc., but the identified prospects were not drilled as Matco Inc faced bankruptcy. 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). To-date, Sharjah Concession's identified prospects comprise Thamama North A, b - Miocene Central and d - Miocene South West.

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 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

Lime Group's concession in Oman is held by Masirah. 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 shows and good reservoirs in certain geological layers, but no commercial discoveries were made.

Overview of the Four Concessions in the Norwegian Continental Shelf, Norway

The 4 concessions in Norway (Norwegian Concessions), identified via the executed Letter of Intent between Lime, North Energy ASA (North Energy) and Rex Oil & Gas Limited (Rex) on 9 April 2012 and the Transaction Agreements (Agreements) signed between Lime and North Energy on 2 May 2012, are governed by Concession (License) Agreements which outline the rights and obligations of the parties to these agreements. An overview of the terms of the Production License Agreements governing the Norwegian concessions, all of which are at exploration stage, is set out below:

Firm Assigned Interests PL 503
(Valberget)
PL 518
(Zapffe)
PL 526
(Vågar )
PL 530
(Heilo)
Location North Sea Barents Sea Norwegian Sea Barents Sea
Acreage 1,409 km2 544 km2 1,127 km2 332 km2
Date of License award 27 Nov 2009 23 Jan 2009 15 May 2009 15 May 2009
Term Upon Declaration of Commerciality (DOC) : 30 years Upon Declaration of Commerciality (DOC) : 30 years Upon Declaration of Commerciality (DOC) : 30 years Upon Declaration of Commerciality (DOC) : 30 years
Operator Grupa Lotos SA (Lotos) Dong Energy (Dong) North Energy Gas de France (GDF)
Current Participating Interests Lotos : 25.0%
Edison : 25.0%
Skagen : 25.0%
North Energy ASA : 25.0%*

* 12.5% to be assigned to Lime Norway
Dong : 40.0%
Sagex : 10.0%
Discover : 20.0 %
North Energy : 30.0%*

* 15.0% to be assigned to Lime Norway
Noreco : 20.0%
Dana : 20.0%
E.ON Ruhrgas : 20.0%
North Energy : 66.67%*

* 33.33 to be assigned to Lime Norway
GDF : 40.0%
Discover : 20.0%
Rocksource : 20.0%
North Energy : 20.0% *

* 10.0% to be assigned to Lime Norway


In the event that the partners of any of the Firm Assigned Interests elect not to extend the tenure of a license for technical or commercial reasons, then Lime will have the option to replace such unavailable production licenses with an equal number of optional production licenses from a grouping comprising PL 536 / Elbrus, PL 562 / Lepus and PL 564 / Alta/Kvitung.

Optional Assigned Interests Current ownership interest of North Energy Interest that may be acquired by Lime (Assigned Interests)
PL 536 / Elbrus 20.0% 10.0%
PL 562 / Lepus 10.0% 5.0%
PL 564 / Alta/Kvitung 20.0% 10.0%

The purchase consideration for the Norwegian Concessions is approximately NOK31.8 million (equivalent to approximately USD5.5 million or RM16.8 million) if the transfer is completed in 2012. It will increase to approximately NOK31.8 million plus Lime's share of actual costs incurred in 2012 if the transfer is completed in 2013.

The Firm Assigned Interests shall be assigned to Lime with economic effect, from and including, 1 January 2012, if the proposed transfer of Norwegian interests to Lime is completed in 2012, or from and including 1 January 2013, if completed in 2013.

The completion of the Agreements is conditional upon, inter-alia, approval from the Ministry of Petroleum and Energy in Norway and the approval of Lime's application to obtain Pre-Qualification status as an oil and gas exploration company in Norway (Pre-Qualification) in order to jointly participate with North Energy, the license holder in partner-operated licenses in the Norwegian Continental Shelf (NCS).

The Agreements are to be completed prior to the long-stop date of 1 July 2013 (Long-Stop Date), after which the obligations of the parties to complete the proposed transfer of Norwegian interests to Lime shall cease for any of the 4 concessions that have not been transferred prior to the Long-Stop Date.

If completion of the Agreements is not achieved by the Long-Stop Date as a result of Lime being unsuccessful in its Pre-Qualification application, Lime is obligated to pay the minimum consideration amount of NOK27.5 million (equivalent to approximately USD4.8 million or approximately RM14.5 million) to North Energy. The amount of NOK27.5 million is payable upon execution of the Agreements.

The governing law of the proposed transfer of Norwegian interests to Lime is Norwegian law, while the place of arbitration is Geneva.

Location: The total acreage of the 4 Norwegian concessions, located at the Norwegian Continental Shelf (NCS), is approximately 3,412 km2, of which North Energy's partial interest shall be assigned to Lime Norway.

Review of drilled wells: Several exploration successes in the NCS were achieved in 2011. The large discoveries made were the combined Avaldsnes and Aldous Major discovery of 1.7 to 3.3 billion barrels of oil equivalent in the North Sea and the Skrugard oil discovery of 250 million barrels of oil equivalent (mmboe) in the Barents Sea. Other discoveries were made in Fogelberg, Norvarg, Krafla, Alve Nord and Butch. In 2012, another large discovery of 250 mmboe was discovered at Havis.

3D Oil Transaction

VIC/P57

Consistent with the strategy to utilise CRPS funds on development assets to balance our overall portfolio from a risk perspective, Hibiscus Petroleum and our wholly-owned subsidiary, Oceania Hibiscus Sdn Bhd (OHSB) acquired, through an issue of new shares, a 13% equity stake in an Australian Securities Exchange-listed company, 3D Oil Limited (3D Oil), for a cash consideration of approximately AUD2.0 million.

Carnarvon Hibiscus Pty Ltd (CHPL), a wholly-owned subsidiary of OHSB, simultaneously signed a conditional farm-in agreement with 3D Oil for the acquisition of a 50.1% unencumbered legal and beneficial right, title and interest in the exploration permit VIC/P57 (VIC/P57) and any petroleum recovered from the permit area, for a purchase price of approximately AUD13.5 million. Apart from this investment, we shall also be injecting a further AUD13.5 million to fund our share of the joint operating activities.

At this time, the above-mentioned transaction is subject to various approvals which will be sought in due course. On completion, CHPL will formally become the operator of the VIC/P57 concession.

The VIC/P57 licence is located in the prolific Gippsland Basin, which represents the most productive hydrocarbon province in Australia. Initial resource estimates of more than 4 billion barrels of oil and condensate reserves and 9.8 trillion cubic feet of gas reserves are associated with this province and it has produced approximately two-thirds of Australia's cumulative oil production and one-third of its gas production to date.

First oil from VIC/P57 is targeted for mid 2014, subject to obtaining relevant approvals and the availability of rig and production facilities. The field life is estimated to be approximately thirteen years but the economic life of the field will be probably somewhat shorter, depending on the development solution that is selected.

The subscription and purchase consideration, combined with our initial investment in the joint operating activities, totals AUD29 million and will be funded via available internal funds and proceeds raised from the CRPS issue.

Development Activities In Relation to the West Seahorse Field, VIC/P57, Gippsland Basin, Australia

A project team has been established in Melbourne with Hibiscus Petroleum, 3D Oil Limited (“3D Oil�), and other specialists to carry out Concept and Front-end Engineering Design studies. These studies are required to progress the proposed development and will be required to obtain government approvals and bank financing.

3D Oil has submitted an application for the declaration of a location covering the West Seahorse oilfield, and received such declaration from the National Offshore Petroleum Titles Administrator in Australia on 5 November 2012. A declaration of location commences the regulatory process to convert the area with a proven hydrocarbon accumulation governed by the terms of an exploration license into an area covered and governed by the terms of an oil and/or gas production license. 3D Oil is currently preparing a production license application for the West Seahorse field.

Whilst the production license application is targeted to be made for the West Seahorse field early next year, the exploration permit for the other blocks within the VIC/P57 acreage including two identified exploration prospects, Sea Lion and Felix, will continue until the end of the current exploration term.

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.

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Summary

Operations Review

Future Plans and Prospects

OPERATIONS REVIEW

IT SHOULD BE NOTED THAT THE INFORMATION PRESENTED IN THIS SECTION REFLECTS THE TECHNICAL INTERPRETATION OF ASSETS AT A PARTICULAR INSTANT IN TIME, AFTER THE CONSIDERATION OF AVAILABLE DATA, AT THAT TIME. TECHNICAL INTERPRETATIONS MAY VARY FROM TIME TO TIME AS MORE DATA OR A BETTER UNDERSTANDING OF THE RELEVANT GEOLOGICAL SETTING BECOMES AVAILABLE.

Update: November 2012

The work programme for the year 2011-2012 under review and the subsequent period has been performed with no safety related incidents. Furthermore, the programme was fulfilled within the planned budgets.

In terms of resources, the data presented below tabulates the estimated current volumes and their categorisation.

Middle East (Operator: Lime Group of Companies)

Asset Net Unrisked Best Estimate Recoverable Resources to Lime(mmboe) Net Risked Best Estimate Recoverable Resources to Lime (mmboe)
Rak North Concession 60.9 12.4
Sharjah Concession 426.0 55.0
Block 50 Concession 2,276.7 248.6
RAK Onshore Concession TBA TBA
Total (Excludes RAK Onshore) 2,763.6 317.0

(Source: Aker Geo)

*Middle East Drilling programme

Early in 2012, Lime outsourced the engineering related activities for its drilling programme. Following a tendering exercise with international drilling project management service companies, SPD LLC (“SPD�), a division of Petrofac Production Solutions, was selected as the drilling project management service company to assist Lime with various detailed aspects of the drilling programme. The Company’s representatives were relocated to the SPD office in Dubai to oversee the work of developing the drilling strategy and all well engineering activities. We have led the tender process, as demanded by the Ministry of Oil and Gas (MOG) in Oman and deal directly with MOG and government departments in every aspect relating to the tender process and regulatory requirements. All drilling related contracts follow MOG procurement guidelines and are approved by the MOG. All tenders have been issued, submissions have been received; and technical and commercial evaluations are on-going. The drilling programme for Lime is initially focused on Block 50 Oman Concession, and is scheduled to start in the first quarter of 2013 pending the finalisation of drilling rig procurement and the securing of environmental and regulatory approvals. Preliminary engineering work is also currently on-going with SPD in preparation for the drilling of a well in the RAK North Offshore Concession. Simultaneously, a market survey is under way to source rigs suitable for RAK North Offshore Concession taking into account the potential challenges.

Norway (Operator: Lime Group of Companies)

Asset Net Unrisked Best Estimate Recoverable Resources to Lime(mmboe) Net Risked Best Estimate Recoverable Resources to Lime (mmboe)
PL 503 123.0 16.5
PL 518 17.6 2.6
PL 526 75.4 12.7
PL 530 10.1 3.2
Total 226.1 35.0

(Source: Company internal estimates)

Australia (Operator: Carnarvon Hibiscus Pty Ltd, a wholly owned subsidiary of Hibiscus Petroleum Berhad)

Asset Contingent Resources(mmboe) Prospective Resources(mmboe)
VIC/P57
  West Seahorse 5.5 1.8
  Sea Lion - 10.6
Total 5.5 12.4

Future Plans and Prospects

Hibiscus Petroleum has focused on developing its position in Lime over the past year. This has allowed an early creation of value and capital appreciation of the equity held by our shareholders. The next phase of our growth strategy is two-pronged:

  • We will continue our work as Project Manager on Lime Group's work programme for 2012 comprising seismic acquisition, processing and interpretation, geological studies and pre-drilling activities; and
  • We will evaluate the acquisition of development and/or producing oil/gas fields to balance our portfolio with more moderate and low-risk assets.

The Management believes that the current uncertainty in the global markets and a softening of oil prices provide an ideal opportunity to acquire the desired type of assets that will result in the balancing of our portfolio. As part of our growth strategy to pursue development and/or producing oil and gas assets, the Company will require funding and has therefore launched a Convertible Redeemable Preference Shares (CRPS) issue exercise to raise up to RM210.0 million on 2 August 2012.

This instrument has been structured in a manner that does not penalise our current shareholders as CRPS investors subscribe at a premium over the prior 5-day volume weighted average market price. At the same time, new investors have been provided with various safeguards and features (including redemption provisions and a conversion option) which have been incorporated into the scheme. The funds raised will be placed with an independent custodian and will only be disbursed to the Company after an external expert confirms that certain minimum project investment criteria have been met.

Block 50 Concession, Oman

Update: November 2012

Sub-Surface Evaluation

Well Engineering

Sub-Surface Evaluation

Lime had inherited legacy seismic data from the previous holders of Block 50 in Oman. These datasets have been reprocessed and reinterpreted using modern techniques over the past year. The reprocessing works were carried out by seismic processing company Spectrum of the United Kingdom. More specifically, a full geological evaluation of the southern part of the block around the Masirah Bay area was carried out. This seismic data, acquired by Hunt Oil in 2004 and 2006, was mainly used for the initial geological interpretation. Available logs from the three wells in the area (SMPA-1, Maimun-1 and SMPB-1) were used for correlation and evaluation of reservoir properties.

In addition, gravity data and magnetic data acquired by Hunt Oil were used to validate structural elements and to define the extent of the ophiolite and the associated mélange feature. This study is being performed by Swedish consultancy, GeoVista.

Based on this preliminary work, a number of prospects and leads have been identified. In addition, more seismic acquisition work was carried out in 2012 as tabulated below:

Period Field Work Programme Service Provider Status
17 May - 1 Jul 2012 560 km 2D and 346 km2 3D seismic BGP International Equipment (M.E) FZE Completed

This additional seismic acquisition work will be used to validate the results obtained from the vintage third party datasets. This work is currently on-going and is anticipated to contribute to the selection of final drilling locations within the block.

Virtual Drilling has also been carried out using legacy seismic data over all the identified leads. This technique, proprietary to Rex, uses responses from the low frequency band of conventional seismic data to identify resonance signatures from reservoir fluids. Using this methodology, positive indications of hydrocarbon accumulations have been seen over the identified prospects and leads.

The exploration work conducted to date has confirmed the large main leads previously identified by Hunt Oil below the mélange. In addition, two new smaller leads were identified west of the mélange. Direct hydrocarbon indications in the form of Amplitude versus Offset (AVO) on seismic data, which opens another opportunity, were found southwest of Maimun-1.

The following geological and geophysical studies were awarded to aid in high-grading the different prospects:

  • AVO: PSS Geo, Norway
  • Basin Modeling and Reservoir Studies: Prime Energy, Dubai, UAE
  • Fault Seal/Trap Studies: RDR, Leeds, United Kingdom

Preliminary reports have been received. The basin modeling confirms the possibility of an active petroleum system under the mélange section and further confirms the possibility of paths for the hydrocarbons to migrate to the identified prospects and leads. A petrophysics study (which has also been undertaken) indicates that the formations in the identified leads are likely to have good reservoir and seal properties.

The 2D seismic data for Block 50 Oman Concession has been processed. The 3D seismic data processing is ongoing and scheduled for completion by the end of 2012.

Prospects covered by the new 2D seismic data are being subjected to Rex Virtual Drilling studies. Virtual Drilling, a proprietary technology of Rex Oil & Gas Limited (a shareholder of Lime), assesses the responses from the low frequency band of conventional seismic data to further define the hydrocarbon bearing potential of drilling.

The data available to-date provides good exploration elements for prospecting and is a good basis to further mature the leads. These results, combined with positive indicators from Rex's virtual drilling tests, lead us to be confident in planning our first few exploration wells.

Commencing August 2011, a drilling scoping study was initiated by Lime and performed by a third party service contractor in anticipation of our drilling programme in Block 50 in Oman. In December 2011, several companies quoted for the drilling project management services. Following a technical and commercial evaluation, SPD LLC (SPD), a subsidiary of Petrofac, was selected. Hibiscus Petroleum representatives have since been assigned to the SPD office in Dubai to work on developing the drilling strategy, well engineering and procurement and tender process.

The Ministry of Oil and Gas of the Sultanate of Oman has reviewed all tender strategies for the two exploration wells to be drilled, and all major tenders and RFQs ( Request for Quotation) have been initiated. Discussions are on-going with drilling rig contractors and a contract for detailed geo-technical site surveys will be awarded in the near term.

Together with SPD, we have also conducted a logistics study and identified the preferred base of operations. In the next few months, we will focus on making this option as cost-effective as possible.

Meanwhile, submissions for all the required regulatory approvals for the work programme are on-going.

Rak North Offshore Concession, UAE

Update: November 2012

Sub-Surface Evaluation

Well Engineering

Subsurface Evaluation

During the first half of 2012, conventional interpretation of 2D seismic data acquired by Lime in 2010 was completed. The project had an extensive scope covering:

  • Regional structural geology and lithology
  • Placing RAK North in a regional geological setting
  • Interpreting the new seismic data
  • Integrating available wells
  • Defining volumetrics and risking of identified prospects

The various studies have defined some conventional Cretaceous prospects with moderate risk.

An extensive seismic resonance analysis was initiated using Rex's Virtual Drilling technique. It suggested that fluids could be found in the Thamama formation to the east and north of the Saleh field. This play was previously unidentified using conventional geological interpretation. A reinterpretation of the seismic data was initiated to integrate the Virtual Drilling results with conventional geological interpretation. Using a more detailed analysis of the seismic dataset, and through a review of literature on a carbonate reservoir depositional model in the region, a new possible prospect setting was identified which supports the Virtual Drilling results.

A seismic study involving AVO analysis and well-driven inversion was initiated to investigate if these methods can give indications of increased porosity over the new plays, thus support the findings from the Virtual Drilling. Results of a post-stack inversion indicate high porosity in the Thamama formation at the F-prospect, while the basin south of the Saleh field shows very low porosity. This conclusion may suggest negative implications for the Dahan B and C prospects which had been previously identified.

In 2012, further seismic data was acquired by Lime as tabulated below:

Period Field Work Programme Service Provider Status
03 March - 06 April 2012 147km 2D and 121 km2 3D BGP International Equipment (M.E) FZE Completed

A further inversion study will be performed on the new 3D seismic data acquired in March 2012. In addition, the following studies have been initiated to further improve the prospectivity of this concession:

  • Reservoir petrophysics and diagenesis study
  • Fault seal/trap study
  • Pressure prediction study

We have received access to 3D seismic data that was acquired in 1984 over the Saleh field (which lies within, but is excluded from Lime’s concession). The data which has been made available to Lime also covers some acreage which lies inside its concession boundaries. Preliminary Virtual Drilling studies are being carried out and initial results confirmed the previous positive conclusions on the prospectivity of the concession.

Well Engineering

As in Oman, a drilling scoping study was initiated by a third party service provider AGR in August 2011. They reviewed all the relevant offset wells and produced a preliminary well design and a budgetary cost estimate. The results indicate that it would be challenging to drill an exploration well in this concession since the target formations are deep, have high pressures and temperatures and, in some cases, produce hydrogen sulphide (H2S) and carbon dioxide (CO2).

Work is currently on-going with SPD for the preliminary well design to identify the long lead items required. At the same time, a market survey is under way to source rigs that are able to drill in a safe and efficient manner taking into account the anticipated challenges.

Rak North Onshore Concession, UAE

Update: November 2012

The Ras Al Khaimah onshore concession is situated in the south of the Emirate of Ras Al Khaimah. Early geographical-based studies are being conducted that will be used to better define the appropriate locations for our seismic data acquisition programme which is planned for 2013.

Sharjah Concession, UAE

Update: November 2012

Sub-Surface Evaluation

Sub-Surface Evaluation

Based on reports from the previous operator of this concession, there is large potential prospectivity in the conventional Middle East Cretaceous structural traps and further opportunities in a very exciting second play-type of a Miocene turbidite setting.

A seismic acquisition campaign was undertaken by Lime in 2012 as tabulated below:

Period Field Work Programme Service Provider Status
18 Feb - 24 Feb 2012
10 Apr - 4 May 2012
78 km 2D
446 km2 3D
BGP International Equipment (M.E) FZE
BGP International Equipment (M.E) FZE
Completed
Completed

Some preliminary Virtual Drilling studies have been performed on the raw seismic data acquired during the 2012 acquisition programme. Whilst the preliminary results are promising, more work will be carried out to obtain a better overview of the prospectivity of the asset. Once the processed seismic data is received from a third party processing house, a full conventional geological study will be performed over this concession coupled with further Virtual Drilling studies.

Four Concessions In Norwegian Continental Shelf, NORWAY

Update: November 2012

Lime entered into agreements on 2 May 2012 to secure 50% of North Energy's equity interests in four concessions totalling 3,412 km2 located in the Norwegian Continental Shelf of Norway. All the concessions are not operated by Lime. They were selected based on a preliminary Virtual Drilling evaluation performed on seismic acquired by the operators of the various blocks.

Activities to secure both pre-qualification of Lime Petroleum Norway AS as an oil and gas exploration company in Norway together with associated regulatory approvals for the part-acquisition of interests in the Norwegian concessions are being actively pursued. Simultaneously, an assessment of all seismic data available for each of the Norwegian assets targeted by Lime is being conducted in order that final selection decisions may be taken to determine whether Lime should retain or exchange any of the assets that are part of the current Norwegian portfolio available to it.

Milestones

CORPORATE CALENDAR FOR HIBISCUS PETROLEUM BERHAD (Hibiscus Petroleum)

September 2012

2013

8 January 2013
Completion of the 3D Oil Transactions

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).
Date Title
01 April 2014
26 Sep 2012