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Polo Resources Ltd (POL)

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Tuesday 20 August, 2019

Polo Resources Ltd

HIBISCUS PETROLEUM - INVESTMENT UPDATE

RNS Number : 6349J
Polo Resources Limited
20 August 2019
 

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

 

20  August 2019

 

 

 

Polo Resources Limited

 

("Polo" or the "Company")

 

 

HIBISCUS PETROLEUM - INVESTMENT UPDATE

 

Hibiscus Petroleum Completes Three-Well St Joseph Infill Drilling Campaign

 

Polo Resources Limited (AIM: POL), the multi-sector investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium, notes that its 8.75% investee company Hibiscus Petroleum Berhad ("Hibiscus") has announced that its whollyowned subsidiary, SEA Hibiscus Sdn Bhd ("SEA Hibiscus"), has safely and successfully completed the St Joseph Infill Drilling campaign in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract ("North Sabah PSC"). This campaign entailed the drilling and completion of three infill oil producers, utilizing triple splitter wellheads on the St Joseph JacketA ("SJJTA") platform with minimal modifications to topside facilities.

 

As previously disclosed by Hibiscus on 24 July 2019, the first infill well, SJ105A was brought online on 19 July 2019, and achieved a stabilised production flowrate of above 1,000 barrels ("bbls") per day. Subsequent to this, the second infill well, SJ105C, was completed on 25 July 2019 and brought online with a stabilised production flowrate of over 1,300 bbls per day. The third and final infill well, SJ105B, was completed on 1 August 2019, and achieved a production flowrate of over 900 bbls per day in its initial well test.

 

The combined increase in production from the three infill wells for the St Joseph Infill Drilling campaign of over 3,200 bbls per day has exceeded predrill expectations of approximately 2,600 bbls per day. This project is expected to add life of field gross reserves of 2.77 million stock tank bbls. Additional process debottlenecking activities are currently underway to reduce the backpressure on these new infill wells. This activity is expected to further improve the stabilised production flowrates of the newly drilled wells.

 

The St Joseph infill drilling project is a production enhancement project which, together with the South Furious 30 ("SF30") infill drilling project and SF30 early water injection project, is part of a 7well drilling campaign being executed under the North Sabah PSC in 2019. The jackup drilling rig utilised for this campaign has mobilised from SJJTA to South Furious JacketC ("SFJTC") to drill and complete three new oil production wells and one water injection well in the SF30 oil field.

 

Commenting on the results of St Joseph infill drilling project, SEA Hibiscus Chief Executive Officer, Dr. Pascal Hos said, "Our investment in the seven well drilling campaign is consistent with our objective to enhance production from the North Sabah asset and demonstrates that Malaysia is an integral part of our longterm business strategy. I am extremely pleased with the outcome of the first three infill wells drilled in the St Joseph oil field.

 

Not only have the results exceeded our predrill expectations, we have also completed the drilling and completion of three infill wells in just over one year since we assumed operatorship of the North Sabah PSC. I thank PETRONAS and our partner, PETRONAS Carigali, for their continued support since we began operating the North Sabah PSC, and, I congratulate the project team, including our contractors, for delivering this project safely and successfully."

 

To recap, SEA Hibiscus assumed operatorship of the North Sabah PSC on 31 March 2018, as a 50% joint venture working interest partner with PETRONAS Carigali Sdn Bhd. The North Sabah PSC consists of St Joseph, South Furious, SF30 and Barton, 4 fields located offshore Sabah in Malaysia, which collectively produce to the Labuan Crude Oil Terminal.

Note: The technical details of the St Joseph infill drilling project in this release, including flowrates, are subject to PETRONAS' approval.

The full details of this announcement can be found at http://www.hibiscuspetroleum.com/.

 

For further information, please contact: 

  Polo Resources Limited

  - Kudzayi Denenga, Investor Relations

+27 (0) 787 312 919



  Allenby Capital Limited (Nominated adviser & broker)

  - John Depasquale

+44 (0)20 3328 5657

 



 

About the Company

Polo Resources Limited is a multi-sector investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For complete details on Polo, please refer to: www.poloresources.com.

 


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