Malaysian oil exploration company Hibiscus Petroleum has signed an agreement to acquire 100% of the outstanding shares of Australia-based Hydra Energy.
Following the transaction, Hydra Energy will become a wholly-owned subsidiary of Hibiscus.
According to Hibiscus, the addition of Hydra Energy and its portfolio of discovered oil fields offshore Australia will maximise the company’s 2P reserves by 15 to 17 million barrels.
Further, the company will get access to an increased reserve base in Australia.
Upon completion of the transaction, the net 2P / 2C Australian oil resource base of Hibiscus would increase from the existing eight million barrels to 23 to 25 million barrels.
The global net 2P / 2C resource base of Hibiscus is expected to be about 47 million barrels following the acquisition.
Hibiscus Petroleum managing director Dr Kenneth Pereira said: "In the current oil price environment, Hibiscus Petroleum has been consolidating its investments in assets that have discovered proven oil.
"The assets we are currently investing must be in production or have near term potential to be revenue generating. The Hydra Energy assets fall firmly in that category."
Hibiscus Petroleum exploration and development vice-president Stephen Dechant said: "Our West Seahorse concession located in the Gippsland Basin has a 2P / 2C oil resource of approximately eight million barrels."
The transaction is slated for completion by the first quarter of 2016.
Hydra Energy has equity interests in seven operated petroleum titles in the Carnarvon Basin, offshore North West Australia.
Image: The addition of Hydra Energy and its portfolio of discovered offshore oil fields will increase Hibiscus’ 2P reserves. Photo: courtesy of num_skyman/FreeDigitalPhotos.net