LOL , what an analysis. U bought the Asia Coding 51% for RM 51. Are they such a deal in the market where you want to sell your company interest of RM 51 but you know you are going to make RM 120 mil per month (base on 100% share). Only dummy will sell and believe

something brewing in their answer ....meaning Hibiscus is all set and get ready to take ownership of North Sabah and might use this Britannia oil rigs to boost output??

What is the status of the lease out of the rig as reported in the 3Q2017 report? Will the USD 10 mil pre-paid lease amount be potential income for Hibiscus?

In our 3Q2017 financial statements, Hibiscus Petroleum Berhad (‘Hibiscus’ or ‘the Company’) disclosed that it had entered into a ‘lease and leaseback’ arrangement with a third party charterer in respect of its rig, (i.e the Britannia). This disclosure was a repeat of a similar in nature disclosure made in Hibiscus’s annual audited financial statements issued in October 2016.

Whilst the structuring of the lease was such that the Company could elect to lease out the rig, at its option, on a long term basis for a prepaid lease amount of USD 10 million, this arrangement would have involved the Company pledging as a security the Britannia (as the lease rental was prepaid). At the time that we entered into this arrangement, the Company had not signed the conditional Sale and Purchase Agreement (‘SPA’) relating to the North Sabah transaction. Given that the Company has now signed the SPA, the Company may have alternative uses for the Britannia and thus we have, at this juncture, not elected to lease out (and lease back) the rig for any period of time.

In specific response to your queries:

Due to the fact that the Company may have an alternative internal application of the Britannia, we have not commenced the leasing of the rig and thus no prepaid lease rental has been received from the third party charterer. For the avoidance of doubt, we have also not provided the Britannia as collateral or as third party pledge to any party. Given this situation, there is no income associated with the leasing of the Britannia. Should we at any stage elect to pursue this arrangement with the third party charterer or any other party, we will make the necessary disclosures.

I believe the recent drop could likely due to upcoming QR results. Those who want to buy better wait till then

Are you sure the PE and EPS is correct or rather sustainable? There are big sum is one time off. If you take out those and calculate their future earning , Dnex PE could me much higher

Those that still dare to play contra for this counter is nuts. To shake off contra player for increase of 1/2 cent ? Lol

cksam, now i understand why you are posting all negative news on hibiscus, you are waiting to buy at lower price. OK understood your intention now, else i can't understand why you so free 'giving' free lecture to everyone here to sell.

the 10% private placement not even listed yet, how can it be due to that??

Cksam , you are telling history that everyone aware. Why oil counters drop ? Very obvious due to meltdown of oil price in 2014. Have anyone anticipated that ? Not even OPEC. So this is not surprised that those umwog or even hibiscus are plunge in their share price. If the IB or anyone here is still talking such glorious time of hibiscus or oil and Gas sector perhaps you are right label them over optimistic. But I did not see anyone even say hibiscus or umwog can back to rm4-5 region. But in shares market we never know. If oil price back to 100 usd and bill market come it might but of course probability for that is lower.
And now hibiscus at 0.40 , with profitable generating assets , potential north Sabah acquisitions in the table , debts free , are you asking people to sell now ? From what you are sharing seems to be. So please be more responsible with what you post. Why should we or others potential investor sell at current level knowing there are potential coming up ? I don't think it is too greedy or ridiculous to target movement of 20-30% if coming north Sabah deal materialise.

We are not insider that work in Hibiscus, therefore nothing can be 100% certain. Even bank are declaring the target price based on forecast and histories. That's the best we are everyone can guess. Of course there are certain conditions where their productions is slower or even oil price are lower than anticipated. But who to blame? To US Shale oil or Arab Saudi ? So there is always trade at your own risk. People here or even research house are free to give their comments and inputs, those who read it need to digest it themself and trade with their own appetite.
From your continuously cursing Hibiscus all the time, don't you are the one being emotional?

Share investment is always subject to risk. There's no doubt on it. Maybe Hibiscus is not cup of your tea of investment but some do find that it's attractive at current level. Many indicators oil shown oil price is bottom, it's rather safe to invest in Hibiscus now. The most is they screw up the north sabah acquisition which could send the price below 0.40. That is the bet most of the people putting in now. If it would success into that acquistion, even if you keep mid term, 1 year ++, we shall see good potential run up of the price provided oil price is steady at 45-50 USD. Of course there are possibility oil price will run wildly to 70-80USD IF some external factors came out such as total meltdown in Venezuela economy, Nigeria production interruption due to attack, US sanction to Iran, this 3 factors alone can cause market lose up to 7 mil barrels per day. This are all known news in the market. You may say US shale oil production increase to offset that, but how far they can go? Now almost saturated at 9.5 mil barrel per day, the most is 10 mil? They have taken all the low hanging fruits in Permian, if they want to pump more, their production cost in increase and they need more financing to do it. Do you think Wall Street will easily give them financing now?

cksam, what is the problems people here checking the oil price either being a long term, short term, or opportunistic investor? Having say that some are keeping for long term, but there is nothing wrong to know whats happening to commodities price which directly affecting the profitability.
Somehow i don't understand why you hated Hibiscus so much until you are cursing it or the investor of it.

SENERGY also oil production company. But this company have tonnes of debts, all their profit evaporated by paying interest. And its a mix of engineering company (Kencana) as well. So far only Hibiscus and Reach energy are full E&P company.

Drilling cost a lot of money, don't think Hib will focus on that pcs of assets at the moment. Perhaps now they are more focus of existing production assets especially on the N Sabah acquisition that require cash and also last payment milestone for Anasuria.

oil price dropping are way to emotional. And remember crude oil is commodities it is subject to price changes. we should start worry if oil price drop below 38USD , else anything above USD 40 is quite safe fundamentally for Hibiscus.

recent oil price drop is extremely oversold and highly manipulated. US shale oil just very small compare to overall world oil demand. And the news published about shale oil was recycle news everyday to push the price down. We see how long more the manipulation going on...

2Q 2017 Hibiscus make nett profit of Rm 10 million when oil price was sold even at USD 41.7 as per attachment. At current price they still can have good margin.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5343157

http://docs.wixstatic.com/ugd/6a7e03_30c0f00263db480abe83a0b106145554.pdf

Provision for taxation in the current quarter was almost 60% of PBT in the current quarter ended 31 March 2017 and has increased compared to the previous quarter. Please explain.

Income generated by Anasuria Hibiscus UK Limited via the sale of crude oil and gas from the Anasuria Cluster is subject to taxation in the United Kingdom. Such taxable income is subject to 30% corporation tax and 10% supplementary charge. The accounting profit (in this case, the profit before taxation) and taxable income can be different in certain reporting periods because of the differences in principles approved for financial reporting and tax filing. In addition, provision for taxation at the end of each accounting period is pro-rated based on latest available information of the total tax obligations for the full financial year.

Other Expenses in the Consolidated Statements of Profit or Loss showed an increase of approximately RM10m in the current quarter ended 31 March 2017 when compared to the quarter ended 31 March 2016. What were these expenses and are they recurring?

The main components of Other Expenses are depreciation and amortisation of equipment and intangible assets relating to the Anasuria Cluster, both of which are non-cash in nature. As you will recall, the acquisition of the Anasuria Cluster was completed on 10 March 2016. As a result, such costs were incurred for only a month in the quarter ended 31 March 2016 compared to three months in the current quarter. These costs are recurring in nature.

@muskyelon, why u think Hibiscus and Petronas will not employed new technologies to extract the oil at lower price. This EOR was halted earlier due to high cost , and now there is cheaper way to drill it. But I think this will be their long term plan. Get the low hanging fruits first before going into EOR.

http://m.thesundaily.my/node/81726

Reported earlier , the reserve for those few EOR are up to 750 mil barrels

New technology that can extract oil for extreme shallow water, part of EOR. Extraction of such oil used to be usd50 per barrel now can make it possible of usd10 or less. North Sabah 4 oil platform have EOR reserve of few hundred millions oil.

http://oilprice.com/Energy/Energy-General/Saudi-America-How-New-Tech-Is-Creating-Another-Oil-Boom.html

Johnfatt , means there is intrinsic value in hibiscus which attracting investor to subscribe the private placement. Don't forget they are getting the bulk at 0.45, those who bought around this level seem to be safe.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5449597

They just announce private placement yesterday. So fast today they found all the investor ?? Almost like a instant buyer for this 10% placement ?

don't expect it drop below 0.45 at least until the private placement completed. It has to go much higher than this to make the private placement offer attractive else investor can just accumulate at open market.

check in the system for direct deal. its all there...but the price transacted is below the price now

Today have more than 3 million shares transacted off market...something brewing?

HeartBreakKid , whats make you think real value given by Mercury Securities is more sensible then what Public Invest given? Have Mercury Securities taken into account north sabah deal?

Heartbreakkid, if what you claims management should be buying more shares in order for them to perform well , then u are proven wrong many times. Look at HL Bank, how much shares did Mr Quek have ? Merely 10%. Mostly hold by institutional investor and retail.
Hibiscus getting this deal is stepping stones for them. First is Anasuria and now is this. Commercially this North Sabah done deal with pre approval from Petronas with certain conditions or t&c to follow. Don't expect hibiscus will decline that.
In short , it will take time for them to proof them self. Maybe 6 months to 1 year from now.
Global oil price is stabilising. Shale oil will not be able to coupe up with the demand for sure. We will see this in few years time.

why so many nuts talking nonsense here ah? They have no others better things to do?

KUALA LUMPUR (May 29): Petroliam Nasional Bhd (Petronas) has given the greenlight to Royal Dutch Shell PLC for the sale of the latter's 50% stake in the 2011 North Sabah enhanced oil recovery production sharing contract (PSC) to Hibiscus Petroleum Bhd's indirect unit SEA Hibiscus Sdn Bhd.

Hibiscus announced last October that it had reached an agreement with Shell for the US$25 million or RM104.63 million stake buy, subject to Petronas' approval.

The PSC includes the Labuan Crude Oil Terminal, and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah. Sabah Shell Petroleum Co (25%) is the operator, with partner Shell Sabah Selatan (25%) and Petronas' subsidiary, Petronas Carigali Sdn Bhd (50%), in the PSC.

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"Petronas Carigali has waived their pre-emption rights under the JOA (joint operating agreement).

"Additionally, Petronas has provided its approval to Shell for the assignment of the interest pursuant to the PSC in favour of SEA Hibiscus. The Petronas approval is subject to certain conditions which are currently being reviewed by the sellers in conjunction with SEA Hibiscus," said Hibiscus.

Hibiscus added it views these as positive developments.

"Subject to the clarifications and subsequent closure of the conditions, the board of directors of Hibiscus expects the proposed acquisition to be completed by the second half of 2017.

On completion of the stake buy, SEA Hibiscus will have a 50% equity stake and operatorship of the PSC and its assets. The PSC has production rights until 2040.

The fields are reported by an independent technical valuer to be producing over 16,000 barrels of oil per day, with estimated remaining developed reserves of 62 million barrels as of April 2016.

Hibiscus previously said that once resources are channelled towards future development opportunities already identified by Shell, the incremental resources are estimated to be up to 79 million barrels.

Trading of Hibiscus shares was suspended today pending material announcement. It last closed at 41 sen for a market capitalisation of RM591.97 million.

Hibiscus shares will resume trading tomorrow (May 30).

This is listed in the latest Q report how to get this deal done.

The Proposed Acquisition is subject to and conditional upon approvals being obtained from
the following:
(i) Sellers' receipt of PCSB's waiver of pre-emption rights and unconditional consent under
the SJOA to the assignment of the entire Interest to SEA Hibiscus or upon fulfilment of
conditions reasonably acceptable to SEA Hibiscus and/or the Sellers, as the affected
party;
(ii) Sellers' receipt of PETRONAS's unconditional approval under the PSC to the
assignment of the entire Interest to SEA Hibiscus or upon fulfilment of conditions
reasonably acceptable to SEA Hibiscus and/or the Sellers, as the affected party;
(iii) the receipt of all consents of other relevant parties, if any; and
(iv) the due execution by the parties of the completion documents.

hahaha...i'm not greedy just want 1 time limit up only please lol

With Anasuria average of 3K barrels per day, they are making average 40-50 mil RM per annum. This north sabah deal add in another 9K barrels per day, if by simple calculations they should make around 160-200 mil per annum. That is just simple cal, afterall it is not so simple as the profitability depends on oil price, downtime, taxes....

hallelujah, yes legally they have not officially claim its close yet. But as we said , don't expect Hibiscus management that stupid to screw up after this by not accepting Petronas pre approval conditions.

"The PETRONAS approval is subject to certain conditions which are currently being reviewed by the Sellers in conjunction with SEA Hibiscus."
Actually its a done deal already la guys. It's just Petronas have some T&C or guidelines for Hibiscus to follow. I'm sure Hibiscus now dying for this assets will agreed to such terms lay by Petronas to close the it.

Called Hibiscus , they said waiting for regulatory approval to release the news. If its bad news what the hell they need regulatory approval to release?
99% is related to Shell Sabah acquisition, as this is subject to regulatory approval even before releasing the news. Let's wait

Lol 1 day drop CI due to shaking in oil price call bearish

Just lease oil rig for usd10 mil need to suspend ? It's like not significant and this already been detailed out in their latest quarter results. But let's see

Check with Rex International in sgx, 3D oil in agx, both are trading with normal. No special announcement. Which means the hibiscus suspension is not related to Lime Petroluem ligitation case and Australia drilling activities.
So left with either its new acquisition or north sabah development. Likely will not be new acquisition as they mentioned in the recent quarter report they need to preserve cash for the upkeeping Anasuria and north Sabah.

WEEKLY See all articles
Hibiscus in deal for rig
Russell Searancke
24 May 2017 19:14 GMT
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Malaysian independent Hibiscus Petroleum has entered into a lease and leaseback arrangement with a third-party for the charter of its jack-up production rig Britannia.

Hibiscus bought the rig some years ago for the West Seahorse oil project in Australia but has postponed that project.

It is a four-legged rig so is able to withstand tougher marine environments.

Hibiscus said in its latest quarterly report that it is able to request a US$10 million prepaid lease rental from the third party.

Hibiscus did not disclose the name of the third party, or where the Britannia will be utilised.

Sound like pending major announcements. If north Sabah deal call off, they could have just disclose it after market close, there's no need of suspension. Cause that acquisition have not factor into hibiscus earnings. That's what I think

Hibiscus Petroleum wishes to announce that it has applied for suspension of trading in the securities of the Company, pending the release of an announcement.

The request for suspension was made under Paragraph 3.1(c) of Practice Note 2 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Bursa Securities has approved the aforesaid application and trading in the securities of the Company has been suspended with immediate effect.



This announcement is dated 26 May 2017.

Check SGX , Rex International did not suspended on today's trading. So looks like not related to Lime Petroleum ligitation.

they have paid 5 mil USD during signed SPA earlier. The rest are defer payment. And all revenue & profit starting from 1 Jan 2017 to the date concluded of acquisition will be reimburse back to Hibiscus. That part could be significant amount of money...

Given the expected capital requirements for low risk identified projects within the Anasuria Cluster,
and potentially, further capital requirements for execution of projects in North Sabah (subject to
Malaysian regulatory approvals), management may defer seeking a Final Investment Decision
(“FID”) for its development offshore Australia for a minimum of three years in favour of more
attractive investment options within our portfolio of opportunities


This paragraph found in the latest quarterly results