Hibiscus Petroleum Berhad said Oct. 9 that its indirect wholly-owned subsidiary, Anasuria Hibiscus UK Ltd. (AHUK), has entered into a conditional sale and purchase agreement with Caldera Petroleum Ltd. to acquire a 50% participating interest in Block 15/13a and Block 15/13b under the production license P198, for a purchase consideration of $37.5 million.

The blocks are located offshore in the U.K. sector of the North Sea, approximately 250 km northeast of Aberdeen. Block 15/13a consists of a significant oil bearing discovered field, whilst Block 15/13b which lies northeast of Block 15/13a consists of a smaller discovered field. Based on an independent report by AGR TRACS International Ltd., the gross contingent oil resources in the blocks is estimated to be 60 million barrels (MMbbl) of oil (30 MMbbl of oil net to AHUK). Prior to this transaction, the group’s proved and probable oil reserves and 2C Oil Resources in its current portfolio are 46 MMbbl and 38.5 MMbbl, respectively.

The proposed acquisition of the blocks is subject to, amongst others, the written consent of the United Kingdom Oil and Gas Authority for the assignment of interests and the transfer of operatorship to AHUK. Hibiscus Petroleum expects this acquisition to complete on or before October 16, 2018, upon which AHUK and the seller will each own a 50% participating interest in the blocks.

“We look forward to working closely with the UK regulators as well as with our new partner to optimally monetize the resources within these blocks and deliver shareholder value,” Dr. Kenneth Pereira, Hibiscus Petroleum’s managing director, said.

AHUK holds 50% joint-operating interests in the P013 license consisting of the Teal, Teal South and Guillemot A fields, as well as 19.3% nonoperating interest in the P185 license 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 are collectively known as the Anasuria Cluster. The Anasuria Cluster is located offshore in the U.K. sector of North Sea.

Offshore