Thursday, October 27, 2011

Hibiscus up, active on US$55m O&G acquisition

KUALA LUMPUR: Shares of Hibiscus Petroleum Bhd climbed in active trade as investors were positive of its acquisition of a stake in Lime Petroleum Ltd for a total of US$55 million.

At 9.13am, Hibiscus was up one sen to 68.5 sen with 7.08 million shares done. The warrants added 1.5 sen to 30.5 sen with 10.939 million units transacted.

The FBM KLCI rose 5.01 points to 1,462.81. Turnover was 118.18 million shares valued at RM98.65 million. There were 154 gainers, 61 losers and 115 stocks unchanged.

Hibiscus Petroleum had on Tuesday proposed to pay US$55 million for a 35% stake in Lime with interest in three companies that have concession rights in offshore oil & gas exploration assets in the Middle East.

The Lime Group is principally involved in the exploration and production activities in the oil and gas industry in the Middle East region.

Hibiscus said Lime Group's assets are located in the Middle East, where extensive oil & gas infrastructure has been developed. It also said Lime Group's assets are located in an area where several other oil and gas companies with significant financial and technical resources operate.

'These other companies include major integrated oil and natural gas producers and numerous other independent oil and natural gas companies and individual producers and operators. In the event that Lime Group has a successful exploration campaign, the assets could attract interest from these other companies as acquisition targets and/or for partnerships,' it said.

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