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KUALA LUMPUR: Hibiscus Petroleum Bhd's indirect wholly-owned unit Anasuria Hibiscus UK Ltd (AHUK), has entered into a conditional non-binding term sheet to acquire License P2366, from United Oil & Gas plc (UOG) and Swift Exploration Ltd (SEL) for US$5 million.

The Blocks are located offshore with British waters, 250km northeast of Aberdeen.

The Blocks include the Crown Discovery, which based on information provided by UOG, consists of 2C contingent resources of 8 million barrels of oil and 6 billion cubic feet of associated gas.

The Blocks are located 12km southeast of Marigold field, which together with the Sunflower field, was acquired by AHUK in October 2018.

UOG and SEL were awarded License P2366 as part of the UK’s Oil and Gas Authority’s 30th Licencing Round in August 2018 and they each hold 95 per cent and 5 per cent participating interest respectively.

The payment terms of the proposed acquisition would commence with a non-refundable payment of US$1 million to UOG and SEL upon completion of the sale and purchase agreement, Hibiscus said in its Bursa Malaysia filing.

Subject to further milestones being achieved post SPA completion, an additional sum of up to US$3 million will be paid before the end of 2020. A further US$1 million will be paid once the field is on production.

In the unlikely event that AHUK decides not to make the post-completion payments, Licence P2366 will return to both UOG and SEL, the filing noted.

The proposed price was arrived at on a similar basis to the consideration paid for the Marigold and Sunflower fields as they are seen as being additive to the existing Marigold and Sunflower development.

The proposed acquisition of License P2366 is subject to completion of due diligence and receipt of OGA’s approval.

In addition to its 50 per cent operated interest in Licence P198 blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, AHUK also holds 50 per cent joint-operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields, as well as 19.3 per cent non-operating interest in the P185 licence consisting of the Cook field.

The Teal, Teal South, Guillemot A and Cook fields which produce oil and gas to the Anasuria Floating production storage and offloading facility (Anasuria FPSO) are collectively known as the Anasuria Cluster.

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