It has forecast a gain in NPV of USD65 million from mid 2015 if its 2015 production plan for its West Seahorse Oil Field in Australia goes well. And if the group is also able to discover oil in the adjacent Sea Lion Field, the gain will be more.
NPV is the present value of net cash inflows generated by a project less the initial investment on the project.
It has a 50.1% interest in offshore block VIC/P57 off Australia’s Victoria which it intends to increase to 55.1% soon.
It has two oil production projects to work now (West Seahorse and Oman Well) May 2014 which is expected to generate cash flow for the group.
The signing of the umbrella heads of agreement in mid May 2014 is a big step to get Australia going. It has a well (L31) to drill before mid 2015 and if it successful, the whole economics of West Seahorse will be different.
The HOA give it a clear path to the monetization of L31.
Hibiscus will utilize internal funds to finance the purchase of Britannia rig. The group expects to raise USD50 million from the exercise of Hibiscus-WA which expires in July 2014 and has a 50 sen strike price.
The new oil discovery in Oman is expected to generate cash flow soon but further details could only be disclosed after Hibiscus gets approval from the Oman government.
On March 7 2014 the group announced that the second exploration well in Block 50 by Masirah Oil Ltd, an associate company had achieved a light oil flow rate of up to 3000 barrels a day.
While the excitement now (May 2014) is in Australia and Oamn, Hibiscus also has plans laid out for other regions in which it has interest.
In the Middle East, it has plans to drill one exploration well in offshore Sharjah, the UAE. In Norway, it plans to drill one exploration well by the first quarter of 2015.
And HiRex will seek to secure two to three concessions.
Hibiscus owns a 35% stake in Lime Petroleum Plc in April 2012. Lime has oil and gas concessions in the Middle East and Norway.
HiRex is a JV between Hibiscus and Rex Intl, the license holder of the proprietary RVD Technology.
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