Hibiscus Petroleum Berhad : Net Production Approximately 20,000 boe per day; Interim Dividend of 1.0 Sen Declared

Corporate and Business Update

(Issued in conjunction with the Quarterly Report for the Financial Quarter Ended 31 March 2022)

Kuala Lumpur, 25 May 2022 - 12.30pm

Net Production Approximately 20,000 boe per day; Interim Dividend of 1.0 Sen Declared

Highlights

• Hibiscus Petroleum Berhad ("Hibiscus Petroleum" or the "Group") announced earnings before interest, taxes, depreciation and amortisation ("EBITDA") of RM434.7 million and a profit after taxation ("PAT") of RM307.5 million (inclusion of a negative goodwill component) for the financial quarter ended 31 March 2022 ("Current Quarter").
• The Group declared an interim single-tier dividend of 1.0 sen per ordinary share on 25 May 2022 for the financial year ending 30 June 2022 ("FY2022").
• A total of 471,973 barrels ("bbl") of crude oil and condensate and over 450,000 bbl of oil equivalent ("boe") of gas were sold in the Current Quarter.
• New assets increased the Group's net production to approximately 20,000 boe per day.
• The Group expects sell a total of approximately 4.6 million boe ("MMboe") of oil, condensate and gas for FY2022. Timing of offtakes will result in a strong financial quarter ending 30 June 2022
  ("Next Quarter").

This Corporate and Business Update covers business activities over the Current Quarter and provides commentary on the operational and financial performance of the Group.

Operational Performance in the Current Quarter

Through our wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd ("Peninsula"), we completed the acquisition of the entire equity interest in Fortuna International Petroleum Corporation ("FIPC") ("Acquisition") from Repsol Exploración, S.A. ("Repsol") on 24 January 2022 ("Completion Date"). FIPC, through its wholly-owned subsidiaries ("FIPC Group") owns participating interests in five Production Sharing Contracts ("PSC"): 2021 Kinabalu Oil PSC, PM3 CAA PSC, PM305 PSC, PM314 PSC and Block 46 PSC (Cai Nuoc). The Group also assumed Repsol's operatorship in all five PSCs.

Following the completion of the Acquisition, the fair value of the identifiable assets and liabilities of FIPC Group was determined in accordance with the provisions of MFRS 3 Business Combinations and the amount, which exceeded the final purchase consideration by RM317.3 million (negative goodwill), was recognised in the Profit or Loss Statement of the Current Quarter.

Table 1 below summarises the operational performance of the Group. Table 1 includes the operational performance of the newly acquired assets which have been included for the first time in this Current Quarter.

1

						North			Anasuria			Newly
			Unit							Acquired			Total
					Sabah			Cluster
										Assets1
Average uptime	%		87		68		92		-
Average gross oil production		bbl/day	14,445		5,566		25,355		45,366
Average net oil production		bbl/day	4,695		1,702		5,742		12,139
Average gross gas export rate @		boe/day	-		1,300		37,116		38,416
Average net gas export rate		boe/day	-		281		7,212		7,493
Average net oil equivalent		boe/day	4,695		1,983		12,954		19,632
	production rate
Total oil & condensate sold		bbl	300,252		74,304		97,417		471,973
Total gas sold		MMscf	-		152		2,553		2,705
Average realised oil & condensate price		USD/bbl	89.58		122.28		122.93		101.62
Average gas price		USD/Mscf	-		30.26		6.98		8.29
Average OPEX per boe		USD/boe	12.89		25.34		11.93		13.73
	(unit production cost)

Figure 1: Summary of operational performance for the Current Quarter.

Notes to Figure 1:

1 Figures for newly acquired assets are for February 2022 and March 2022. @ Conversion rate of 6,000 standard cubic feet ("scf") per boe.

Mscf - thousand scf MMscf - million scf

Figures are subject to rounding.

FY2022 Offtake Schedule

Figure 2 below illustrates the latest estimate of the Group's oil and condensate offtake schedule and gas sales from our producing assets for the Next Quarter and FY2022. As of 31 March 2022, we have sold a total of 2.6 MMboe of oil, condensate and gas net to the Group. For FY2022, we estimate to deliver a total of approximately 4.6 MMboe of oil, condensate and gas, net to the Group.

Total oil, condensate and gas sales volume (boe)

Actual -

Latest Estimate - Next Quarter

Year-to-date

Latest Estimate -

FY 2022

April 2022

May 2022

June 2022

Total

Full year

(July 2021 to

FY2022

March 2022)

North

Oil

1,452,918

311,670 @

- @

285,000 @@

596,670 @@

2,049,588 @@

Sabah

Kinabalu

Oil

-

-

350,000 @@

- @@

350,000 @@

350,000 @@

PM305/

Oil

7,748

3,330 @

4,200 @@

4,000 @@

11,530 @@

19,278 @@

PM314

PM3 CAA

Oil & Cond.

89,669

204,301 @

94,200 @@

- @@

298,501 @@

388,170 @@

Gas

425,500

192,053 @

230,200 @@

217,100 @@

639,353 @@

1,064,853 @@

Anasuria

Oil

522,298

- @

- @

161,000 @@

161,000 @@

683,298 @@

Cluster

Gas

81,519

8,497 @

7,300 @@

3,900 @@

19,697 @@

101,216 @@

Block 46

Oil

-

- @

- @

- @@

- @@

- @@

Total

2,579,652

719,851 @

685,900 @@

671,000 @@

2,076,751 @@

4,656,403 @@

Oil & Cond.

2,072,633

519,301 @

448,400 @@

450,000 @@

1,417,701 @@

3,490,334 @@

Gas

507,019

200,550 @

237,500 @@

221,000 @@

659,050 @@

1,166,069 @@

Figure 2: The Group's offtake schedule for Q4 FY2022.

Notes to Figure 2:

• Estimated production from the newly acquired assets (i.e. Kinabalu, PM305, PM314, PM3 CAA and Block 46) from Completion Date to

30 June 2022 is 2.0 MMboe of oil, condensate and gas, net to the Group.

• Actual. (For actual offtakes conducted in April & May 2022, oil prices realised are above USD100/bbl) @@ Estimate.

2

Operational Updates

Awards

With COVID-19 mitigation measures in place, both the North Sabah and Anasuria assets have been performing satisfactorily. We are pleased to disclose the following awards and achievements for safety and production operations in Malaysia:

North Sabah Operations:

• Petronas Focused Recognition Award - Awarded in February 2022 for successful production enhancement gains of 20% above the target plan for CY2021, despite the impact from COVID-19.
• Petronas Focused Recognition Award - Awarded in March 2022 for increasing gas supply from PM3 CAA to support higher gas demand in February 2022.

Production

Malaysia South China Sea

North Sabah PSC: Production Operations

The table below provides a summary of key operational statistics for the North Sabah asset, based on the 50% participating interest held by SEA Hibiscus Sdn Bhd ("SEA Hibiscus"), for the Current Quarter and for the prior three financial quarters:

				January to	October to		July to		April to
			Unit	March	December		September		June
				20222	2021		2021		2021
Average uptime	%	87	92		81		95
Average gross oil production		bbl/day	14,445	16,305		14,368		17,281
Average net oil production		bbl/day	4,695	5,937		5,185		6,394
Total oil sold		bbl	300,252	587,374		565,292		608,006
Average realised oil price1		USD/bbl	89.58	75.15		75.01		72.07
Average OPEX per bbl		USD/bbl	12.89	13.06		19.14		15.67
	(unit production cost)

Figure 3: Operational performance for the North Sabah asset.

Notes to Figure 3:

1. The average realised oil price represents the weighted average price of all Labuan crude sales from SEA Hibiscus.
2. Figures for the period January 2022 to March 2022 are provisional and may change subject to the PSC Statement audit and that this is pending PETRONAS's review.

The average uptime of the North Sabah production facilities of 87%, achieved during the Current Quarter, is lower than that reported for the financial quarter ended 31 December 2021 ("Preceding Quarter") primarily due to higher unplanned production platform interruptions which occurred in January 2022, and planned shutdowns arising from the commencement of the annual major maintenance campaign in March 2022. Consequently, average gross oil production decreased by 11.4% during the Current Quarter when compared to the Preceding Quarter. Average OPEX per bbl for North Sabah reduced to USD12.89 when compared to the Preceding Quarter's OPEX ber bbl of USD13.06 due to a larger than proportionate reduction in OPEX vis-à-vis the reduction in gross oil production. The OPEX per bbl metric is expected to increase in the Next Quarter as planned activities from major maintenance campaign ramp up.

3

A total of 300,252 bbls of oil, net to SEA Hibiscus was sold at an average oil price of USD89.58 per bbl, representing an increase of 19.2% when compared to the Preceding Quarter's realised average oil price.

In terms of expenditure, costs related to specialised studies, production maintenance and support services during the Current Quarter resulted in a capital expenditure of RM2.0 million net to SEA Hibiscus.

North Sabah PSC: South Furious 30 Water Flood Phase 2

SEA Hibiscus is currently working towards maturing and obtaining the necessary Field Development Approvals from PETRONAS for the South Furious 30 Water Flood Phase 2, which is currently expected to comprise of 6 water injector and 4 infill wells at the South Furious 30 field. More information relating to the scope and benefits of this project will be disclosed in our next Quarterly Report.

Kinabalu Oil PSC: Production Operations

The table below provides a summary of key operational statistics for the Kinabalu asset, based on the 60% participating interest held by Peninsula Hibiscus Sdn Bhd ("Peninsula Hibiscus"), for the months of February and March 2022:

		February to
	Unit	March
		20221
Average uptime	%	77
Average gross oil production	bbl/day	10,217
Average net oil production	bbl/day	2,946
Total oil sold	bbl	02
Average realised oil price	USD/bbl	-
Average production OPEX per bbl	USD/bbl	14.15

Figure 4: Operational performance for the Kinabalu asset.

Notes to Figure 4:

1

2

Figures for the period February 2022 to March 2022 are provisional and may change subject to the PSC Statement audit and that this is

pending PETRONAS's review.

Oil offtake in January was conducted prior to the completion of the Acquisition.

Unplanned platform interruptions affected the overall performance of the Kinabalu field but was offset by optimisation measures implemented at the Kinabalu facility. Further major maintenance activities, well intervention and project work will start in the next quarter with the arrival of an Accommodation Work Boat at the location allowing increased manning and 24-hour maintenance- related operations. Contracting and procurement work for the 3 Electrical Submersible Pump projects is currently ongoing with the objective of implementing these to further enhance production.

4

Commercial Arrangement Area

PM3 CAA PSC: Production Operations

The table below provides a summary of key operational statistics for the PM3 CAA asset, based on the

35% participating interest held by Peninsula Hibiscus, for the months of February and March 2022:

				February to
			Unit	March
				20221
Average uptime	%	96
Average gross oil & condensate production		bbl/day	14,340
Average net oil & condensate production		bbl/day	2,467
Average gross gas export rate		boe/day	37,116
Average net gas export rate		boe/day	7,212
Average net oil & condensate equivalent		boe/day	9,679
	production rate
Total oil sold		bbl	89,669
Total gas sold		MMscf	2,553
Average realised oil & condensate price		USD/bbl	123.69
Average realised gas price		USD/Mscf	6.98
Average production OPEX per boe		USD/boe	10.96

Figure 5: Operational performance for the PM3 CAA asset.

Notes to Figure 5:

1 Figures for the period February 2022 to March 2022 are provisional and may change subject to the PSC Statement audit and that this is pending PETRONAS's review.

Overall operational performance of PM3 CAA during the months of February and March 2022 has been good. Oil and condensate production has been supported by better reservoir performance and stable operations. Furthermore, with a move towards the post-COVID endemic phase, and a visible increase in economic activities in Southeast Asia, we have observed strong gas demand from both PETRONAS and PetroVietnam.

Both capital projects and maintenance related activities have been progressing well. Costs related to these work programmes resulted in a capital expenditure of RM32.4 million.

5