Hibiscus Petroleum Bhd. · MYX:HIBISCS
Hibiscus Petroleum Bhd — Merger or Acquisition (December 2021)
22 slides from Hibiscus Petroleum Bhd's merger presentation, Dec 28, 2021
Slide 1: Transformational Acquisition: Proposed Acquisition of Repsol Assets
Transformational Acquisition Proposed Acquisition of Repsol Assets in Malaysia & Block 46, Vietnam (“Proposed Acquisition”) 28 December 2021
Slide 2: Disclaimer
Disclaimer This presentation should be read with, and in the context of, the Company’s Circular to Shareholders dated 13 December 2021 (“Circular”). Please refer to the Circular for details. The purpose of this presentation is to provide general information about Hibiscus Petroleum Berhad (the “Comp
Slide 3: Presentation Agenda
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 3 Registration Number: 200701040290 (798322-P)
Slide 4: Presentation Agenda: Transaction Overview
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 4 Registration Number: 200701040290 (798322-P)
Slide 5: Proposed Transaction: Acquisition of Repsol Assets
Proposed Transaction: Acquisition of Repsol Assets On 1 June 2021, Hibiscus signed a SPA to acquire 100% of Fortuna International Petroleum Corporation (“FIPC”) from Repsol Exploración, S.A. The FIPC Group holds participating interests in producing oil & gas fields in Malaysia and Vietnam. Repsol, S
Slide 6: Presentation Agenda: Key Benefits
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 6 Registration Number: 200701040290 (798322-P)
Slide 7: Key Benefits 1: A Step Change in Growth
Key Benefits …1: A Step Change in Growth Significant increases are expected in production, reserves and results Production Uplift (kboepd) 2P Reserve Uplift1 (MMboe) EBITDA2 Uplift (US$mm) 26.5 193 83.2 17.4 34.5 101 9.1 48.7 92 9.1 9.1 48.7 48.7 92 92 Current Production Rate Pro Forma Current 2P (a
Slide 8: Key Benefits 2: Attractive Fundamentals & Valuation
Key Benefits …2: Attractive Fundamentals & Valuation Attractive acquisition price of USD212.5million :- - below third-party assets valuation of USD285million - projected IRR of 46% Oil, Condensate and Gas Reserves as at 1 January 2021 by RPS Energy Net (1) (2) RPS Brent Price used in 2P valuation Oi
Slide 9: Key Benefits 3: Operated Asset Base
Key Benefits …3: Operated Asset Base As operator, Hibiscus will have significant level of financial control and decision making in the operational management of the Assets Benefits of operational control Flexibility on timing of CAPEX Timing of maintenance Ability to manage commodity cycles Timing o
Slide 10: Other Key Benefits
Other Key Benefits Diversification into gas Current portfolio Pro forma c.4% c.31% Gas Gas • Almost 50% of acquired production and 40 % of 2P reserves is gas. • Provides better balance to HPB’s asset portfolio in terms of price stability, markets and operations. • Key aspect of our energy transition
Slide 11: Presentation Agenda: Potential Risks
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 11 Registration Number: 200701040290 (798322-P)
Slide 12: Potential Risks
Potential Risks • Non-completion • Our ability to integrate the new business into our existing organization • Reliance on current estimates of Reserves • Valuations have been based on assumptions and due diligence work • Change in oil prices • Operational risks • Development • Production • Political
Slide 13: Presentation Agenda: Price and Funding
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 13 Registration Number: 200701040290 (798322-P)
Slide 14: Fair Purchase Consideration
Fair Purchase Consideration Working Capital Adjustment of the FIPC Purchase Price : Group as at 31 December 2020 USD 212.5 million Base Purchase Price (cashflows from 1 Based on Effective Date of 1 January 2021 January 2021) Final Price/Settlement Sum to be mainly adjusted for 1 : (+) Time value of
Slide 15: Fully Funded Purchase Consideration
Fully Funded Purchase Consideration The purchase consideration is fully funded by a combination of : Deduction from the Net proceeds raised from Internally generated Purchase Price of the placement of CRPS in funds and available agreed pre-closing November 2020 of about facilities of Hibiscus divide
Slide 16: Oil & Gas Remains a Critical Energy Source
OIL & GAS REMAINS A CRITICAL ENERGY SOURCE Oil and gas will play an essential role during the energy transition Before the effects of the energy transition come to full fruition, growth in demand for oil is anticipated. Oil demand* 2019 2022 2026 99 mil bpd >99 mil bpd 103 mil bpd • Significant inve
Slide 17: Presentation Agenda: Concluding Messages
Presentation Agenda 1 Transaction Overview 2 Key Benefits 3 Potential Risks 4 Price and Funding 5 Industry Outlook 6 Concluding Messages Hibiscus Petroleum Berhad 17 Registration Number: 200701040290 (798322-P)
Slide 18: Potential to Repeat Hibiscus' Track Record in North Sabah
Potential to Repeat Hibiscus’ Track Record in North Sabah Hibiscus targets to continue to improve on Repsol assets’ performance and reduce operating costs/bbl North Sabah PSC Gross Oil Production mb/d Previous Operator Hibiscus 30 25 20 15 10 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 19: Key Benefits
Key Benefits 1 A Step Change in Growth 2 Attractive Valuation Fully Operated Assets Allow for Operating Flexibility and Synergies 3 Potential 4 Diversification into Gas 5 Stable Partners with Established Track Records 6 Asset Value Potentially More Robust as Oil Prices Increase 19 Hibiscus Petroleum
Slide 20: Status and Recommendation
Status and Recommendation Approvals Received Date of Receipt Bank Negara Malaysia 21 June 2021 Barbados Exchange Control Authority for the sale of FIPC Shares to Peninsula 29 June 2021 Hibiscus Pre-emption rights waiver by each of PETRONAS Carigali and PVEP 9 July 2021 PETRONAS for the change in con
Slide 21: Hibiscus Petroleum Berhad
21 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
Slide 22: Q&A
Q&A 22 Hibiscus Petroleum Berhad Registration Number: 200701040290 (798322-P)
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