Sabah deals a boost to Hibiscus Petroleum's share price

PETALING JAYA: Shares of Hibiscus Petroleum Bhd rose 3.53% this morning after its indirectly owned subsidiary SEA Hibiscus Sdn Bhd entered into a novation agreement to acquire the entire interest of Sabah Shell Petroleum Company Ltd and Shell Sabah Selatan Sdn Bhd in the North Sabah Enhanced Oil Recovery production sharing contract (PSC) .
At 11am today, the stock rose to 88 sen, with some 28.5 million shares changing hands. It is the fifth most actively traded stock on the local bourse.
SEA Hibiscus will then continue production and further develop petroleum resources at the North Sabah oil fields upon the completion of the proposed acquisition of 50% participating interest in the PSC for US$25 million (RM101.9 million).
Petronas Carigali holds another 50% interest in the joint operating agreement and the PSC.