Hibiscus Petroleum Buys Stake in 3D Oil’s VIC/P57 (Australia)
- Business & Finance
3D Oil Limited has entered into a conditional Farm-in Agreement and Subscription Agreement with Hibiscus Petroleum Berhad.
Under the Farm-in Agreement, Hibiscus Petroleum will acquire a 50.1% interest in petroleum exploration permit VIC/P57 up front, and will invest up to A$27m in tranches to fund joint operations on the permit.
Under the Subscription Agreement, Hibiscus Petroleum will subscribe for new shares in 3D Oil equal to 14.99% of 3D Oil’s current share capital (before the new shares are issued) as part of a cornerstone investment valued at approximately A$2.0m based on the 30 day Volume Weighted Average Price before this announcement. This is equivalent to 13.0% following Completion and issue of the new shares to Hibiscus Petroleum.
The funds will be applied principally towards the appraisal of the West Seahorse oil field under a Joint Operating Agreement with the intention of proceeding to development if successful. The joint venture may also drill one exploration well in the Sea Lion prospect.
3D Oil’s Managing Director, Noel Newell, commented, “Since floating 3D Oil on the ASX in 2007, we have investigated numerous paths to develop West Seahorse. This transaction with Hibiscus Petroleum clearly highlights the value in VIC/P57 and will enable us to go forward on the development and ultimately an oil producer.”
3D Oil’s Chairman, Mr Campbell Horsfall, said “Hibiscus Petroleum provides a strong strategic fit with 3D Oil. We have created a strong strategic alignment between 3D Oil and Hibiscus Petroleum by granting an interest in our key asset as well as a cornerstone shareholding in our company. I warmly welcome the Managing Director of Hibiscus Petroleum, Ken Pereira, to the Board.”
Press Release, August 15, 2012