Hibiscus Petroleum Berhad : Completes Transformative Acquisition of High Quality Oil and Gas Assets from Repsol

HIBISCUS PETROLEUM BERHAD - PRESS RELEASE

Hibiscus Petroleum Completes Transformative Acquisition of High- Quality Oil and Gas Assets from Repsol

Kuala Lumpur, 25 January 2022 - 9.00 a.m.

Hibiscus Petroleum Berhad (HIBI: MK) ("Hibiscus Petroleum", the "Company" or the "Group") is pleased to announce that its indirect wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd ("Peninsula Hibiscus"), has successfully completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation ("FIPC") on 24 January 2022.

Out of the purchase price of USD212.50 million, the net amount paid at completion is USD123.65 million after taking into account various adjustments including the deposit paid of USD15.00 million.

The completion comes shortly after all conditions were fulfilled as announced on 20 January 2022.

To recap, the high-quality asset portfolio comprises interests and operatorship in the following five production sharing contracts ("PSCs") in Malaysia and Vietnam:

		Participating
PSC		Interest		Location		PSC expiry
PM314	60%		Geologically in the Southwest Malay	30.03.2033
				Basin, offshore Peninsular Malaysia
PM305	60%		Geologically in the Southwest Malay	26.11.2029
				Basin, offshore Peninsular Malaysia
2012 Kinabalu Oil	60%		Sabah, offshore Malaysia	25.12.2032
PM3 CAA	35%		Geologically in the Northeast Malay	31.12.2027
				Basin, within the CAA between
				Malaysia and Vietnam
Block 46	70%		Geologically in the Northeast Malay	31.12.2027
				Basin, Vietnamese waters

Our average daily oil and gas production is projected to increase almost threefold. As operator of the newly acquired assets, the Group is well-positioned to build on its successful operational track record in its other producing assets in the United Kingdom and Malaysia.

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Commenting on the completion, Managing Director, Dr Kenneth Gerard Pereira, said, "The completion of this acquisition brings to a close the process which began when we first bid for these assets and opens a new chapter in the Group's next phase of growth. We welcome onboard the Repsol team into the Hibiscus family and look forward to working together on further enhancing value from these assets in 2022 and beyond.

Almost 50% of the production comprises gas. The addition of gas production is expected to present a better balance to our Group's asset portfolio in terms of price stability, markets and operations. Such diversification represents a key aspect of our energy transition strategy as natural gas has been regarded as an important bridging fuel as the world transits to a lower carbon energy mix.

Finally, this transaction has been made possible with the strong support of our shareholders, industry regulators both in Malaysia and Vietnam as well as our business partners. Our current partnership with PETRONAS and Petronas Carigali Sdn Bhd will be further strengthened and we are excited to forge a new working relationship with PetroVietnam as we expand our geographic footprint into Vietnam."

Definition:

CAA: Commercial Arrangement Area

About Hibiscus Petroleum Berhad

Hibiscus Petroleum Berhad (Hibiscus Petroleum) is Malaysia's first listed independent oil and gas exploration and production company. Its key activities are focused on monetising its oil producing fields and growing its portfolio of development and production assets in areas of its geographical focus: Malaysia, United Kingdom, Vietnam and Australia. Hibiscus Petroleum is headquartered in Kuala Lumpur, and its shares are listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities). For more information, please refer to https://www.hibiscuspetroleum.com

For enquiries, kindly contact:
Head Office	Investors and Media
HIBISCUS PETROLEUM BERHAD	Investor Relations Team
Registration Number: 200701040290 (798322-P)	[e-mail]
2nd Floor, Syed Kechik Foundation Building	www.hibiscuspetroleum.com
Jalan Kapas, Bangsar
59100 Kuala Lumpur
Tel: [phone]; Fax: [phone]

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