Hibiscus Petroleum To Acquire Shell’s Interests And Operatorship In The North Sabah EOR PSC

Hibiscus Petroleum Berhad (“Hibiscus Petroleum” or “the Company” or “the Group”) is pleased to announce that its indirect wholly-owned subsidiary, SEA Hibiscus Sdn Bhd (“SEA Hibiscus”) has entered into a conditional sale and purchase agreement with Sabah Shell Petroleum Company Limited and Shell Sabah Selatan Sdn Bhd (collectively “Shell”) to acquire Shell’s entire fifty percent participating interests in the 2011 North Sabah Enhanced Oil Recovery Production Sharing Contract (“PSC”) for a purchase consideration of USD 25 million (excluding post completion adjustments and reimbursements to Shell). Shell’s interest also include operatorship responsibilities which would transfer from Shell to the SEA Hibiscus through a transfer of operatorship program.