However, with the US$25 mil (RM101.43 mil) acquisition on the verge of being completed, Malaysia’s first listed independent oil and gas (O&G) exploration and production company has to grapple with some uncertainties relating to the oilfield.
One of them is that the data on the reservoir is dated (as of 2015). Additionally, a former O&G engineer says oil production in the North Sabah oilfields may have a water cut of up to 80%.
A water cut is the ratio of water produced compared with the volume of total liquids from an oil well.
The engineer says in a well-producing oil with 80% water cut, the cost of handling the wastewater can be as high as US$4/barrel of oil produced.
“In some parts, water production is increasing as fast as the reservoir oil rates are declining,” he tells FocusM.
For more details, Uncertainties loom over Hibiscus' Sabah oilfield
Thereafter, the share price experienced minor pullback before the big rally that pushed the price to a new high of RM1.17 on 15 January 2018.
Daily chart.
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Source :
1) Metastock
2) www.focusmalaysia.my
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