Malaysia's Hibiscus Petroleum Berhad reports that its wholly-owned subsidiary, Timor Hibiscus Ltd., has executed a share sale agreement for the acquisition of 100% of the shares in Talisman Resources (JPDA 06 105) Pty Ltd., a wholly owned subsidiary of Toronto Stock Exchange and New York Exchange listed, Talisman Energy Inc.
The assets of the company acquired include a 25% stake in the Kitan producing oil field. Based on the current estimates, Hibiscus expects the Kitan oil field to contribute significant net cash to the company in the second half of 2014. At current oil prices, this will allow Hibiscus to book its first operating profit in 2014.
The purchase price for the acquisition is $18 million. The purchase price is for the acquisition of 100% of the shares in the Talisman subsidiary, Talisman Resources (JPDA 06-105) Pty Ltd. and includes the value of the asset effective Jan. 1 together with the working capital within the company effective June 23.
Completion of the transaction is subject only to regulatory approvals. The acquisition is being funded using the equity capital raised through the conversion of Hibiscus warrants, which are due for conversion by July.