Posted by kokchengkai > 2021-06-02 16:47 | Report Abuse

Spanish player Repsol has agreed to sell its operated assets in Malaysia and Block 46 CN in Vietnam to Kuala-Lumpur listed Hibiscus Petroleum. Operating the new assets will mark a massive step up for Hibiscus.

The deal includes a 35% interest in production-sharing contract (PSC) PM3 CAA, 60% in 2012 Kinabalu Oil PSC, 60% in PM305 PSC, 60 % in PM314 PSC, and 70% in Block 46 CN in Vietnam – a tie-back asset to the PM3 CAA production facilities. The PM3 block is located within a commercial arrangement area (CAA) set up between Malaysia and Vietnam to allow exploration and the development of several oil and gas discoveries.

These assets represent about 2% of Repsol’s global current net output, the company said in a statement. “They are great assets with remaining potential,” said Simon Molyneux, managing director at Perth-based upstream consultancy Molyneux Advisors.

Hibiscus beat rival bidder Medco Energi of Indonesia for the assets. However, Repsol did not disclose the agreed sales price. But energy consultancy Rystad told Energy Voice that the sales value of the assets is estimated between $250 million and $300 million.

“Hibiscus has come a long was but these are massively complex operations and this is a huge step up for them,” a Kuala Lumpur-based industry advisor told Energy Voice.

“In the North Sea, there have been a pack of private equity-backed players willing to pick up stakes as the legacy players exit their positions. In this region, Hibiscus seems to be taking on that role pretty much single-handedly,” Readul Islam, an Asia upstream specialist at Rystad Energy, told Energy Voice.

Andrew Harwood, Asia Pacific research director at Wood Mackenzie, told Energy Voice that the “deal encapsulates the biggest themes in the oil and gas sector right now – strong mid-term fundamentals versus long-term energy transition goals.”

“We should see a surge of deal activity as prices stabilise and buyers and sellers look to make up for lost time over the last 12 months,” added Harwood.

The agreement is subject to regulatory approval and the waiver of partners’ pre-emption rights. However, Vietnam regulatory approval could be a stumbling block.

There could also be potential issues around the massive long term abandonment exposure, which is complicated by the joint management of the Commercial Arrangement Area (CAA) by both Vietnam and Malaysia.

Following the sale, Repsol will still have a large footprint in Southeast Asia, notably in Indonesia and Vietnam.

“The sale of the company’s upstream assets in Malaysia and in Block 46 CN in Vietnam supports Repsol’s broader rationalisation of its global portfolio, streamlining its presence from 25 to 14 core countries within the framework of the multi-energy company’s 2021-2025 Strategic Plan that focuses on the geographic areas with the greatest competitive advantages,” said Repsol.

This deal follows the sale of the company’s producing assets in Russia, the cessation of oil production activities in Spain and the exit from exploratory activity in other countries, added Repsol.

“The funds raised from the transaction as well as the resulting capex savings will contribute to the global strategic goal of funding core projects and new low-carbon initiatives,” said the company.

Hibiscus Petroleum is Malaysia’s first listed independent oil and gas exploration and production compan

Posted by DragonG > 2021-06-02 16:55 | Report Abuse

But energy consultancy Rystad told Energy Voice that the sales value of the assets is estimated between $250 million and $300 million.

_Means if tomorrow announcement the price tag anything below RM1Billion will be a good buy?..

Posted by scaredymouse > 2021-06-02 16:59 | Report Abuse

Tomorrow will resume?

Posted by DragonG > 2021-06-02 17:01 | Report Abuse

The CRPS will raise total fund of RM2 Billion.
Maybe sill have money to buy Exxon's assets at Peninsula Malaysia.

Posted by DragonG > 2021-06-02 17:04 | Report Abuse

Maximum number of acquisition from the CRPS are 3.

Posted by DragonG > 2021-06-02 17:07 | Report Abuse

Base on previous acquisitions only 1 day suspension.

Posted by kokchengkai > 2021-06-02 17:10 | Report Abuse

if tomoro price tag is under 1 billion mean negative goodwill ..QR will see earning per share suddenly surge up 200% or more haha

Posted by derrtan > 2021-06-02 17:23 | Report Abuse

Honestly Oil at USD70 it is hard to say it is not a good deal. Game changer for Hibiscus.

Posted by Godofgambler > 2021-06-02 17:38 | Report Abuse

Looking at Rm1.50 for Hibiscus..

Posted by Godofgambler > 2021-06-02 17:43 | Report Abuse

https://www.theedgemarkets.com/article/domestic-oil-product-demand-rebounds-amid-economic-recovery-efforts-says-mustapa

Posted by Deidara > 2021-06-02 17:51 | Report Abuse

Any news why its under suspense?

Posted by sampooler > 2021-06-02 18:00 | Report Abuse

Usually price will double in mid term.. 0.65 x 2 = 1.3

Posted by derrtan > 2021-06-02 19:18 | Report Abuse

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163708

Posted by Deidara > 2021-06-02 19:20 | Report Abuse

Nice announcement! buckle up your belt comrades!

Posted by AllYouCanBuy > 2021-06-02 19:21 | Report Abuse

When one company acquires another, the stock price of the acquiring company tends to dip temporarily, while the stock price of the target company tends to spike. The acquiring company's share price drops because it often pays a premium for the target company, or incurs debt to finance the acquisition.

It depends on the acquisition price.

Posted by derrtan > 2021-06-02 19:23 | Report Abuse

Wow USD212.5m only

Posted by bullmarket1628 > 2021-06-02 19:25 | Report Abuse

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS HIBISCUS PETROLEUM BERHAD (HIBISCUS PETROLEUM OR COMPANY) PROPOSED ACQUISITION BY PENINSULA HIBISCUS SDN BHD, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF HIBISCUS PETROLEUM, OF THE ENTIRE EQUITY INTEREST IN FORTUNA INTERNATIONAL PETROLEUM CORPORATION

Hibiscus Petroleum Berhad

Description: HIBISCUS PETROLEUM BERHAD (HIBISCUS PETROLEUM OR COMPANY)

PROPOSED ACQUISITION BY PENINSULA HIBISCUS SDN BHD, AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF HIBISCUS PETROLEUM, OF THE ENTIRE EQUITY INTEREST IN FORTUNA INTERNATIONAL PETROLEUM CORPORATION

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163708

On behalf of Hibiscus Petroleum, CIMB Investment Bank Berhad wishes to announce that Peninsula Hibiscus Sdn Bhd (“Peninsula Hibiscus”), an indirect wholly-owned subsidiary of the Company, has on 1 June 2021 entered into a conditional sale and purchase agreement (“SPA”) with Repsol Exploración, S.A. (“Repsol”) for the proposed acquisition by Peninsula Hibiscus of the entire equity interest in Fortuna International Petroleum Corporation (“FIPC”) for a cash purchase consideration of USD212.5 million (subject to agreed adjustments upon completion) (“Proposed Acquisition”).
 
Please refer to the attached file for further details of the Proposed Acquisition.
 
This announcement is dated 2 June 2021.

Posted by pang72 > 2021-06-02 19:25 | Report Abuse

Posted by derrtan > Jun 2, 2021 7:23 PM | Report Abuse

Wow USD212.5m only

HOW DO THEY FINANCE THE CASH? ANY IDEA?

Posted by bullmarket1628 > 2021-06-02 19:28 |

Post removed.Why?

Posted by derrtan > 2021-06-02 19:28 | Report Abuse

again WoW USD212.5mil only

Posted by Ismamiaku > 2021-06-02 19:30 | Report Abuse

Patutlah Pang72 Tak Mau beli, Dia tahu esok pasti turun punya…sebab hibiscus beli bukan dibeli..

Posted by Masterinvest > 2021-06-02 19:44 | Report Abuse

Luckily I let go early before MCO, if not Tml dip ..all money burn..observe when can enter again this counter..swift to dayang,deleum and penergy first..

Posted by Prashan Ram > 2021-06-02 19:46 | Report Abuse

this is how u become huge ..eat up opportunities like this when nobody want it..good move hibiscus

Posted by skyjy100 > 2021-06-02 19:55 | Report Abuse

luckily i still holding, can ride with the wave tomorrow! those come here and trying to spread some negativity, obviously u trying to talk ppl down to sell their ticket to u. Good luck queuing to buy at 0.7 or above tomorrow.

Posted by wallstreetrookie > 2021-06-02 19:58 | Report Abuse

bearish
"Further out, the big uncertainty is how fast economies will decarbonize. The quicker it happens, the greater the risk of write-downs for companies that continue to drill, and the better the chances that low-carbon bets pay off. “The energy system of the next two to three decades will be the most diverse in history. All the numbers are fluid,” says Oswald Clint, an analyst at Bernstein.

Rapid declines in carbon emissions would reward the oil and gas producers trying to lead the transition, such as Shell, which has invested in renewable power, biofuels, carbon capture and hydrogen. Based on various aggressive scenarios for global carbon reductions, Mr. Clint estimates that Shell could be worth between 20% and 58% more.

As shareholders push public oil giants to reconsider big new fossil fuel projects, national oil producers have an opportunity. Depending on the pace of decarbonization, it might be golden or just a mirage."
WSJ

Posted by wallstreetrookie > 2021-06-02 19:58 | Report Abuse

However, there exist short term upside on O&G companies due to recent surge in crude oil prices. There's still meat left on the table for traders.

Posted by AllYouCanBuy > 2021-06-02 20:10 | Report Abuse

I rather move to UZMA which was granted 2 new green energy projects this year.

Posted by pang72 > 2021-06-02 20:18 | Report Abuse

...got positive and negative views on acquisition of asset.
It is ok. Let see how it react tomorrow!!

Posted by derrtan > 2021-06-02 20:26 | Report Abuse

really don't understand how it can be bad? if you read their QR, their cost only USD10 per barrel. The production cost for these fields maybe higher but with USD70 brent oil now, they can make hell out of money!!!

Posted by Forcepre7238 > 2021-06-02 20:29 | Report Abuse

Will gap up for tmr morning??

Posted by Bullrunrun > 2021-06-02 20:39 | Report Abuse

Hibicus bought a new block of Petrol assets in Vietnam. No wonder after holding this share for almost 4 years only get 0.5 cents dividend. Haiz

Posted by derrtan > 2021-06-02 20:40 | Report Abuse

Hibiscus beat rival bidder Medco Energi of Indonesia for the assets. However, Repsol did not disclose the agreed sales price. But energy consultancy Rystad told Energy Voice that the sales value of the assets is estimated between $250 million and $300 million.

Hibiscus only bought USD212.5Mil. straight away making 15% on asset appreciation. Putih putih RM100mil negative goodwill. Haha. Because they close the deal months back where the oil price still USD50

Posted by sampooler > 2021-06-02 20:40 | Report Abuse

Yes... tmr rocketing.. their asset is huge now.

Posted by DragonG > 2021-06-02 20:45 | Report Abuse

Good price.Should be positive tomorrow.

Posted by Gain83 > 2021-06-02 20:55 | Report Abuse

Suspen 3 days. Next Monday justopen

Posted by Kumaraes > 2021-06-02 20:55 | Report Abuse

Read the announcements properly.... Hibiscus halt trading until friday 5.00pm. On Monday only trading resume

Posted by DickyMe > 2021-06-02 20:56 |

Post removed.Why?

Posted by Mayleow777 > 2021-06-02 20:57 | Report Abuse

Next monday Bursa close .King Birthday

Posted by Citadel9999 > 2021-06-02 21:15 | Report Abuse

30 cent coming jialat lor !!!!

Posted by Gain83 > 2021-06-02 21:19 | Report Abuse

Announcement bursa

Posted by InsiderR > 2021-06-02 21:20 | Report Abuse

https://www.theedgemarkets.com/article/repsol-said-be-looking-exit-malaysia
(dated 5-March-21)

“ In February last year, when IHS Markit came out with its article on Repsol’s operations in Malaysia, it had said that the production was between 21,380 boe/d and 24,500 boe/d, and valued it at US$410 million to US$470 million."

Hib acquisition cost is US$212mil.
Brent US$70, Opex +/- US$15/bbl, approx. 20k boed production net to Hib.
It is not difficult to estimate the gross profit.

Posted by pea3034 > 2021-06-02 21:25 | Report Abuse

jgn mimpi lah harga naik, harga takberubah atau turun adalah . jgn siok sendiri.

Posted by AllYouCanBuy > 2021-06-02 21:27 | Report Abuse

If a counter is suspended for more than 1 day, the outcome is usually negative.

Posted by DragonG > 2021-06-02 21:28 | Report Abuse

Yes Bursa approved the extension.
As Monday is public holiday Tuesday will reopen.

Posted by AllYouCanBuy > 2021-06-02 21:34 | Report Abuse

As a rule, acquisitions tend to drive up the value of a target company's stock. The rationale here is clear: buyer (ie HIBISCUS) is invariably forced to pay a premium (i.e. a price above the current market price) to acquire the company.

Posted by Jumpman > 2021-06-02 21:41 | Report Abuse

LOL, forced to pay? price above current market price?
one show his intention to leave the region market, you think Hib will be forced to pay MORE to acquire it?

Posted by Forcepre7238 > 2021-06-02 21:45 | Report Abuse

Company applied to suspend not bursa suspend.. different meaning :)

Posted by WarrenBluffer > 2021-06-02 21:48 | Report Abuse

SUSPENSION OF SECURITIES

Type Announcement
Subject SUSPENSION OF SECURITIES
Description HIBISCUS PETROLEUM BERHAD ("HIBISCUS PETROLEUM" OR "COMPANY")
- REQUEST FOR SUSPENSION
Hibiscus Petroleum wishes to announce that it has applied for a further suspension in the trading of its securities on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) pending the release of an announcement on the full details of the proposed acquisition. Your attention is drawn to Hibiscus Petroleum’s announcement dated 2 June 2021.



The request for suspension is made under subparagraph 3.1(a) of Practice Note No. 2 on Request for Suspension of the Main Market Listing Requirements of Bursa Securities.



Bursa Securities has approved the aforesaid application and trading in the securities of the Company will continue to be suspended from 9.00am on Thursday 3 June 2021 until 5.00pm on Friday 4 June 2021.





This announcement is dated 2 June 2021.

Posted by Xxxting > 2021-06-02 21:53 | Report Abuse

allucanbuy i wonder why u keep talkin negative talk

Posted by izoklse > 2021-06-02 22:08 | Report Abuse

what the whole week ke suspended. Adeh lama nyer nak tunggu. heheh