KUALA LUMPUR: Hibiscus Petroleum Bhd was the most actively traded counter in the morning session today on a new update of the North Sabah Enhanced Oil Recovery (EOR) production sharing contract (PSC) 50 per cent stake acquisition.
At 11.54 am, Hibiscus Petroleum shares perked eight sen to 54.5 sen with 156.16 million shares traded.
Public Investment Bank said Petronas Carigali Sdn Bhd (PCSB) had waived its preemption rights under the joint operating agreement of the PSC and Petronas has provided its approval to Shell which is conditional for the assignment of interest to the PSC in favour of Hibiscus.
“We believe the acquisition is in the bag, and expected to be completed by end-2017 at the latest,” it said in a research note today.
The investment bank has initiated coverage of Hibiscus Petroleum with an “outperform” call and a target price of RM1.06.