Hibiscus Petroleum : High Oil Prices Continue to Positively Impact Financials

Corporate and Business Update

(Issued in conjunction with the Quarterly Report for the Financial Quarter Ended 30 September 2022)

Kuala Lumpur, 22 November 2022 - 12.30pm

High Oil Prices Continue to Positively Impact Financials

Highlights

• Hibiscus Petroleum Berhad ("Hibiscus Petroleum" or the "Group") announced earnings before interest, taxes, depreciation and amortisation ("EBITDA") of RM298.4 million and a profit after taxation ("PAT") of RM135.3 million for the financial quarter ended 30 September 2022 ("Current Quarter"), on the back of average realised oil prices of over USD110 per barrel ("bbl").
• For the Current Quarter, a total of 1.0 MMbbl oil and condensate and over 510,000 boe of gas were sold.
• For the financial year ending 30 June 2023 ("FY2023"), the Group remains on track to sell a total of approximately 7.2 to 7.5 MMboe of oil, condensate and gas.

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

Figure 1 below summarises the operational performance of the Group for the Current Quarter.

						North			Anasuria			Peninsula			Total or
			Unit							Hibiscus
					Sabah			Cluster					Average
										Group1
Average uptime	%		93		53		88		-
Average gross oil & condensate production		bbl/day	14,975		4,182		17,310		36,467
Average net oil & condensate production		bbl/day	4,732		1,211		4,942		10,885
Average gross gas export rate @		boe/day	-		1,020		25,488		26,508
Average net gas export rate		boe/day	-		258		5,633		5,891
Average net oil, condensate and gas		boe/day	4,732		1,468		10,575		16,775
	production rate
Total oil & condensate sold		bbl	289,635		143,728		570,435		1,003,798
Total gas sold		MMscf	-		142		2,944		3,086
Total oil, condensate & gas sold		boe	289,635		167,395		1,061,097		1,518,127
Average realised oil & condensate price		USD/bbl	111.54		97.12		115.28		111.60
Average gas price		USD/Mscf	-		38.63		5.78		-
Average realised oil, condensate and gas		USD/boe	111.54		116.21		78.01		88.61
	price
Average production OPEX per boe2		USD/boe	20.56		37.02		18.48		20.51

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

1

Notes to Figure 1:

1. Peninsula Hibiscus Group's assets include 2012 Kinabalu Oil PSC, PM3 CAA PSC, PM305 PSC, PM314 PSC and Block 46 Cai Nuoc PSC.
2. This is computed based on gross production OPEX divided by gross oil, condensate and gas production.

• Conversion rate of 6,000 standard cubic feet ("scf") per boe.
  Mscf - thousand scf. MMscf - million scf.
  Figures are subject to rounding.

Q2 FY2023 and Q3 FY2023 Oil and Condensate Offtake Schedule and Gas Sales

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 financial quarter ending 31 December 2022 ("Q2 FY2023") as well as the financial quarter ending 31 March 2022 ("Q3 FY2023"). During these periods, we estimate to sell a total of 2.1 MMboe and 1.8 MMboe of oil, condensate and gas respectively, net to the Group. In FY2023, we target to sell a total of approximately between 7.2 to 7.5 MMboe of oil, condensate and gas.

Total oil, condensate and gas sales volume (boe)

Latest Estimate - Q2 FY2023

Latest Estimate - Q3 FY2023

October

November

December

Total

January

February

March 2022

Total

2022

2022

2022

2022

2022

North

Oil

250,184 @

- @@

288,000 @@

538,184 @@

- @@

- @@

300,000 @@

300,000 @@

Sabah

Kinabalu

Oil

288,106 @

- @@

- @@

288,106 @@

- @@

315,000 @@

- @@

315,000 @@

PM305/

Oil

3,064 @

3,600 @@

3,700 @@

10,364 @@

3,700 @@

3,200 @@

3,500 @@

10,400 @@

PM314

PM3 CAA

Oil & Cond.

- @

98,000 @@

93,000 @@

191,000 @@

99,000 @@

101,000 @@

100,000 @@

300,000 @@

Gas

235,697 @

235,000 @@

259,000 @@

729,697 @@

242,000 @@

180,000 @@

238,000 @@

660,000 @@

Anasuria

Oil

- @

- @@

180,000 @@

180,000 @@

- @@

- @@

190,000 @@

190,000 @@

Cluster

Gas

9,900 @

11,200 @@

9,800 @@

30,900 @@

9,300 @@

8,200 @@

9,000 @@

26,500 @@

Block 46

Oil

125,521 @

- @@

- @@

125,521 @@

- @@

- @@

- @@

- @@

Total

912,472 @

347,800 @@

833,500 @@

2,093,772 @@

354,000 @@

607,400 @@

840,500 @@

1,801,900 @@

Oil & Cond.

666,875 @

101,600 @@

564,700 @@

1,333,175 @@

102,700 @@

419,200 @@

593,500 @@

1,115,400 @@

Gas

245,597 @

246,200 @@

268,800 @@

760,597 @@

251,300 @@

188,200 @@

247,000 @@

686,500 @@

Figure 2: The Group's offtake schedule for Q2 FY2023 and Q3 FY2023.

Notes to Figure 2:

• Actual.
  @@ Estimate.

Operational Updates

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:

2

			July to	April to		January to		October to
		Unit	September	June		March		December
			20223	20223		2022		2021
Average uptime	%	93	85		86		92
Average gross oil production		bbl/day	14,975	13,901		14,463		16,311
Average net oil production		bbl/day	4,732	4,275		4,488		5,991
Total oil sold		bbl	289,635	611,800		300,252		587,374
Average realised oil price1		USD/bbl	111.54	119.80		89.58		75.15
Average production OPEX per		USD/bbl	20.56	27.94		12.87		13.06
bbl2

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 oil sales from SEA Hibiscus.
2. This is computed based on gross production OPEX divided by gross oil production.
3. Figures for the period July 2022 to September 2022 are provisional and may change subject to the PSC Statement audit and PETRONAS's review.

The average uptime of the North Sabah production facilities of 93%, achieved during the Current Quarter, is higher to that delivered for the financial quarter ended 30 June 2022 ("Preceding Quarter"). Average gross oil production increased by 7.7% during the Current Quarter when compared to the Preceding Quarter, primarily attributable to the completion of annual planned major maintenance campaign for calendar year ("CY") 2022 in August 2022. This campaign took place from March 2022 to August 2022. As such, related activities in the Preceding Quarter were higher as they were for the full three months compared to two months in the Current Quarter. Consequently, average OPEX per bbl for North Sabah decreased to USD20.56 as compared to the Preceding Quarter's OPEX per bbl of USD27.94.

A total of 289,635 bbls of oil, net to SEA Hibiscus was sold at an average oil price of USD111.54 per bbl in the Current Quarter, representing a decrease of 6.9% when compared to the Preceding Quarter's realised average oil price. It should be noted that as shown in Figure 2, SEA Hibiscus expects to sell approximately 538,184 bbls of oil in Q2 FY2023.

In terms of expenditure, costs related to seismic processing and interpretation, specialised studies, production maintenance and support services during the Current Quarter resulted in a capital expenditure of RM2.4 million net to SEA Hibiscus.

North Sabah PSC: South Furious 30 Water Flood Phase 2

On 2 June 2022, PETRONAS approved Milestone Review 4 (MR4) for the South Furious 30 Water Flood Phase 2, which entails the drilling of 6 water injectors and 5 oil infill wells at the South Furious 30 field over 2 years: CY2023 and CY2024. The objective of the water injection project is to increase production and reserves recovery via pressure support and sweep into existing and new oil producers. The 11 wells will be drilled from a newly installed well head platform, bridge linked to an existing jacket. The drilling campaign is tentatively planned to commence from September 2023, and a new water injection facility is expected to be introduced to the field in August 2024. Milestone Review 5 (MR5) approval is expected to be given by the end of November 2022, upon which the project can proceed to the sanctioning phase. MR5 is the final review by PETRONAS.

3

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 Hibiscus Oil & Gas Malaysia Limited ("HML") (formerly known as Repsol Oil & Gas Malaysia Limited), for the Current Quarter, the Preceding Quarter, as well as for the months of February and March 2022:

		July to	April to	February to
	Unit	Sep	June	March
		20221	2022	2022
Average uptime	%	78	92	86
Average gross oil production	bbl/day	5,925	11,343	10,389
Average net oil production	bbl/day	2,459	3,475	3,219
Total oil sold	bbl	288,540	350,236	02
Average realised oil price	USD/bbl	118.04	121.15	-
Average production OPEX per bbl3	USD/bbl	21.20	7.35	5.97

Figure 4: Operational performance for the Kinabalu asset.

Notes to Figure 4:

1. Figures for the period July 2022 to September 2022 are provisional and may change subject to the PSC Statement audit and PETRONAS's review.
2. Oil offtake in January was conducted prior to the completion of the acquisition of the entire equity interest in Fortuna International Petroleum Corporation ("FIPC") from Repsol Exploración, S.A. ("FIPC Acquisition") on 24 January 2022.
3. This is computed based on gross production OPEX divided by gross oil production.

Average gross oil production decreased by approximately 47.8% in the Current Quarter compared to the Preceding Quarter due to the annual planned major maintenance campaign for CY2022 which took place from 29 July 2022 to 9 August 2022, during which the production facilities were shut down for 11 days. The low production level was exacerbated by a slower than planned production ramp up post-shutdown caused by the unavailability of the high pressure ("HP") compressor, due to issues encountered with the HP compressor tubular bracing installation. The uptime metric was also adversely impacted by the HP compressor issue which affect the supplies of gas lift to the oil wells, and an emergency shutdown at platform due to power failure in late September 2022. The HP compressor issue was successfully resolved in the last week of September 2022.

Average OPEX per bbl increased to USD21.20 when compared to the Preceding Quarter due to higher expenditures incurred during the shutdown activities coupled with lower production levels. As shown in Figure 2, HML expects to sell approximately 288,106 bbl of oil in Q2 FY2023.

In terms of expenditure, costs related to the Electrical Submersible Pump Pilot Facilities and other minor production maintenance activities during the Current Quarter resulted in a capital expenditure of RM7.7 million net to HML.

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 HML and Hibiscus Oil & Gas Malaysia (PM3) Limited ("HMPM3") (formerly known as Repsol Oil & Gas Malaysia (PM3) Limited), for the Current Quarter, the Preceding Quarter, as well as the months of February and March 2022:

				July to	April to	February to
			Unit	Sep	June	March
				20221	2022	2022
Average uptime	%	93	94	97
Average gross oil & condensate production		bbl/day	10,855	14,019	14,303
Average net oil & condensate production		bbl/day	2,279	2,590	2,491
Average gross gas export rate		boe/day	25,488	33,491	36,209
Average net gas export rate		boe/day	5,633	6,360	7,174
Average net oil & condensate equivalent		boe/day	7,912	8,950	9,665
	production rate
Total oil & condensate sold		Bbl	272,867	293,346	89,669
Total gas sold		MMscf	2,944	3,429	2,553
Average realised oil & condensate price		USD/bbl	112.46	113.99	123.69
Average realised gas price		USD/Mscf	5.78	8.00	6.98
Average production OPEX per boe2		USD/boe	18.00	10.16	11.73

Figure 5: Operational performance for the PM3 CAA asset.

Notes to Figure 5:

1

2

Figures for the period July 2022 to September 2022 are provisional and may change subject to the PSC Statement audit and PETRONAS's

review.

This is computed based on gross production OPEX divided by gross oil, condensate and gas production.

Average gross oil and condensate production fell by approximately 22.6% in the Current Quarter compared to the Preceding Quarter mainly due to annual planned major maintenance campaign for CY2022 which took place from 20 August 2022 to 2 September 2022. The production facilities were shut down for 14 days during this period. In addition, production was further impacted by a production ramp up delay caused by drilling rig mobilisation to the Bunga Raya B platform ("BRB") for an infill well drilling program, as well as poorer performance of the PM3 North gas injection compressor which disrupted gas lift supply to the oil wells. In CY2022, as at the Current Quarter, 4 wells have been drilled. A further 2 wells are expected in Q2 FY2023, taking the total for CY2022 to 6 wells.

Average OPEX per boe increased to USD18.00 as compared to the Preceding Quarter's OPEX per boe of USD10.16 primarily due to expenditure related to topside maintenance, integrity and upgrade activities throughout the quarter during the annual planned major maintenance campaign. Average realised oil prices in Current Quarter were similar to that achieved in the Preceding Quarter, but average realised gas prices were lower due to High Sulphur Fuel Oil price (to which the gas price is benchmarked) trading at a higher than anticipated discount to Brent. In Q2 FY2023, as shown in Figure 2, we expect to sell approximately 191,000 bbls of oil and condensate and 730,000 boe of gas.

In terms of expenditure, costs related to the H4 Development and BRB Infill drilling activities during the Current Quarter resulted in a capital expenditure of RM41.6 million net to HML and HMPM3.

5