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Polo Resources Ltd (POL)

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Thursday 12 December, 2019

Polo Resources Ltd

Hibiscus Petroleum - Investment Update

RNS Number : 7273W
Polo Resources Limited
12 December 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.

 

12  December 2019

 

 

 

Polo Resources Limited

 

("Polo" or the "Company")

 

 

HIBISCUS PETROLEUM - INVESTMENT UPDATE

 

Hibiscus Petroleum completes acquisition of the Crown Discovery in the North Sea

 

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 today that pursuant to the earlier disclosures made by Hibiscus on 17 July 2019 and 7 October 2019, its indirect wholly- owned subsidiary, Anasuria Hibiscus UK Limited ("AHUK"), has completed the acquisition of North Sea Blocks 15/18d and 15/19b ("License P2366" or "Blocks"), from United Oil & Gas PLC ("United") and Swift Exploration Limited ("Swift") (collectively referred to as "Sellers") for a total cash consideration of up to USD5 million.

 

Completion of the acquisition occurred pursuant to the receipt of approval from the United Kingdom's Oil and Gas Authority ("OGA") for the assignment of License P2366 to AHUK from the Sellers and the appointment of AHUK as Exploration Operator on 4 December 2019. In accordance with the terms of the conditional Sale & Purchase Agreement executed on 7 October 2019 ("SPA"), a further USD0.9 million has been paid upon achieving completion of the acquisition.

 

The Blocks are located offshore in the United Kingdom sector of the North Sea, approximately 250km northeast of Aberdeen. The Blocks include the Crown Discovery which consists of 2C contingent resources that range between 4 to 8 million barrels of oil , subject to an independent 3rd party expert assessment. The Blocks are located 12km south-east of Marigold field, which together with the Sunflower field, was acquired by AHUK in October 2018.

 

United and Swift were awarded License P2366 as part of the OGA's 30th Licencing Round, in August 2018, and they each hold 95% and 5% participating interest respectively.

 

AHUK holds 50% operated interest in Licence P198 Blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, in addition to 50% joint-operating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields, as well as 19.3% non-operating interest in the P185 licence 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 United Kingdom sector of North Sea.

 

Subject to further milestones being achieved post SPA completion, an additional sum of USD3 million will be paid within 7 business days of the actual date of approval of the Marigold Field Development Plan ("FDP") which includes the development of the Crown discovery as part of the overall Marigold development ("FDP Approval"), by the relevant United Kingdom regulatory authority, which is expected to be received by the end of 2020. However if FDP Approval is not achieved, or if the Marigold FDP submitted does not include the development of the Crown discovery, AHUK may, at its discretion, proceed with the USD3 million payment or transfer License P2366 back to the Sellers at nominal consideration without any further payment obligation. In addition, up to USD1 million will be paid through an overriding royalty scheme once the Crown discovery has commenced production.

 

Given its proximity to Marigold, the contemplated development of Crown is based on a single well subsea tieback to the Marigold field.

 

About United Oil & Gas Plc

 

United Oil & Gas PLC is an independent oil & gas start-up established in 2015. It is listed on the AIM market of the London Stock Exchange.

 

About Swift Exploration Limited

 

Swift Exploration Limited is a private oil and gas exploration company formed in 2003. It focuses on developing exploration and production opportunities in the North Sea and the UK onshore for farm- out/sale.

 

The full details of these announcements 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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