KUALA LUMPUR (April 24): Hibiscus Petroleum Bhd said it has completed the drilling of the Bunga Aster-1 exploration well and is expecting its first oil production to begin in May.

In a statement on Wednesday, Hibiscus said its wholly-owned subsidiary Hibiscus Oil & Gas Malaysia Limited has completed the drilling of the well that has approximately 17.5 metres of oil-bearing sandstone with up to 46 metres of potential oil column.

“Multiple oil samples were collected during the logging campaign. Initial assessments indicate good reservoir characteristics,” it said, adding that the unit will progress with a thorough evaluation and appraisal of the discovery to further define the size of the discovery.

The operator of the PM3 Commercial Arrangement Area Production Sharing Contract (PM3 CAA PSC) said the Bunga Aster-1 discovery will add additional reserves and oil production to the PSC, extending the economic life of the PSC.

It said it has plans to explore other near-field prospects in the PM3 CAA PSC in the next three years through collaboration with various stakeholders under the stewardship of Petroliam Nasional Bhd (Petronas).

Hibiscus holds a 35% participating interest in PM3 CAA, located within the commercial arrangement area between Malaysia and Vietnam. The investment includes operations management relating to the petroleum production from seven existing oil fields.

The other non-operating partners of PM3 CAA are Petronas’ wholly-owned subsidiary Petronas Carigali Sdn Bhd and PetroVietnam Exploration Production Corporation Ltd.

For the financial quarter ended Dec 31, 2023 (2QFY2024), the group reported a net profit of RM102.33 million, up 45.2% from RM70.47 million during the previous year’s corresponding quarter, due to higher profit margins supported by higher average realised prices.

Revenue was down 12% year-on-year to RM713.13 million from RM627.55 million.

Its commercial arrangement area segment, which consists of the PM3 CAA PSC, reported a net profit of RM60.28 million for the quarter.

Shares of Hibiscus rose eight sen or 2.95% to RM2.79 at Wednesday’s close, valuing the group at RM2.25 billion.