Polo Resources (LON: POL) has taken an 8.4% stake in a Malaysia listed oil firm, whose assets, it says, are set for a step-jump on completion of two recent acquisitions.
Polo has subscribed for US$5mln of shares in Hibiscus Petroleum Berhad settled atUS$4.238 a share - a 4.08% discount to the Hibiscus closing price yesterday.
Hibiscus's current development assets are in Australia with an estimated 8 million barrels of 2P/2C reserves/resources.
But that's set to jump to around 47million barrels with the completion of the Hydra and Anasuria acquisitions.
In August, Hibiscus announced a joint venture agreement with Ping Petroleum to each acquire 50% of the entire interests of Shell UK Ltd, Shell EP Offshore Ventures Limited and Esso Exploration and Production UK Limited in the producing Anasuria oil and gas fields in the North Sea.
Anasuria is currently producing at an average of over 7,000 barrels of oil.
The acquisition remains subject to approval from the UK government and is expected to complete in the first quarter next year.
Then in November, Hibiscus announced the acquisition of 100% of Hydra Energy through the issue of new shares.
Hydra has interests in seven operated Petroleum licences in the Carnarvon Basin, offshore North West Australia.
Four of these have discoveries totalling 15 - 17 million barrels net to Hydra.
Polo Resources' executive chairman, Datuk Michael Tang said: "Although the oil and gas industry is languishing in an environment of oversupply and low prices, Hibiscus is on track to generate positive cash flow and grow its high quality asset base.
"We are very excited about the prospects of our investment in Hibiscus."
In the 18 months to June 30, Hibiscus reported a loss before tax of around £13.9 million on revenues of around £2.9 million.
As at June 30, it had consolidated net assets of around £86.4 million.