Polo Resources Limited HIBISCUS PETROLEUM - INVESTMENT UPDATE (9348Y)

TIDMPOL

RNS Number : 9348Y

Polo Resources Limited

28 August 2018

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

28 August 2018

Polo Resources Limited

("Polo" or the "Company")

HIBISCUS PETROLEUM - INVESTMENT UPDATE

Polo Resources Limited (AIM: POL), the multi-sector investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium, is pleased to announce that its 8.75% investee company Hibiscus Petroleum Berhad (HIBI:MK) ("Hibiscus Petroleum") has reported that the estimated proved plus probable reserves ("2P Reserves") of oil and gas of the Anasuria Cluster, its asset in the North Sea off the United Kingdom, net to its wholly owned subsidiary Anasuria Hibiscus UK Limited ("AHUK"), stood at 24.4 million barrels ("mmbbls") and 17.5 billion standard cubic feet ("bscf"), respectively, as of 1 July 2018.

The update, based on a reserves report ("Reserves Report") issued by LEAP ENERGY Partners Sdn Bhd ("LEAP ENERGY") which was commissioned to undertake an independent evaluation of in-place and recoverable hydrocarbons, represents a net increase of 4.2 mmbbls or 20.8% compared to 20.2 mmbbls projected by RPS Energy Consultants Limited ("RPS Energy") as of 1 March 2016, after factoring AHUK's production to date at the asset.

AHUK has produced approximately 2.5 mmbbls of oil during the period since the acquisition of its interest in the Anasuria Cluster.

Table 1: 2P Oil Reserves (mmbbls) movement of AHUK since the acquisition of the Anasuria Cluster.

 
 Reserves Report    Period Start    Reserves    Produced   Added   Period       Reserves 
                     Date            at Start                       End Date     at End 
 RPS Energy 
  (June 2016        1.03.2016       20.2        2.5        6.7     30.06.2018   24.4 
                   --------------  ----------  ---------  ------  -----------  --------- 
 LEAP ENERGY        1.07.2018       24.4        n.a        n.a     n.a          n.a 
  (August 2018) 
                   --------------  ----------  ---------  ------  -----------  --------- 
 

LEAP ENERGY, which also performed an economic valuation of AHUK's oil and gas reserves in the Anasuria Cluster, has estimated that the 2P Reserves net to AHUK as at 1 July 2018 are valued at USD401 million (versus 2P Reserves valuation by RPS Energy in June 2016 of USD208 million).

Commenting on the results of the Reserves Report, Hibiscus Petroleum's Managing Director, Dr Kenneth Pereira, said, "We are pleased with the increase in the 2P Reserves estimates in the Anasuria Cluster by an independent Competent Person. This demonstrates that our efforts to extend the life of the Anasuria Cluster and unlock value from our assets are on the right track."

The Anasuria Cluster consists of the Teal, Teal South, Guillemot and Cook fields which produce to the Anasuria Floating, Production, Storage and Offloading vessel. The Anasuria Cluster is located offshore in the United Kingdom sector of North Sea. AHUK holds 50% joint-operating interests in the Teal, Teal South and Guillemot fields, as well as 19.3% non-operating interest in the Cook field.

The full details of this announcement can be found at http://www.hibiscuspetroleum.com/.

For further information, please contact:

 
 Polo Resources Limited 
  - Kudzayi Denenga, Investor Relations   [phone] 
 
 Allenby Capital Limited (Nominated 
  adviser & broker) 
  - John Depasquale                       [phone] 
 
 Blytheweigh (Public relations) 
  - Julia Tilley, Simon Woods             [phone] 
 

About the Company

Polo Resources Limited is a multi-sector investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For complete details on Polo, please refer to: www.poloresources.com.

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August 28, 2018 02:01 ET (06:01 GMT)