KUALA LUMPUR (July 18): Hibiscus Petroleum Bhd continued to soar on renewed buying interest, and emerged as the most actively-traded counter with 25.92 million shares being traded this morning.
The oil and gas exploration and production company rose as much as three sen or 16.22% to 21.5 sen, before paring its gains at 21 sen at 11.20 am.
However, the counter is still about its five-year low, and if compared with its one year high of 88 sen on Aug 7 last year, the counter has fallen 76.14%.
The counter saw 25.92 million shares traded, compared with its 200-day average volume of 12.22 million.
MIDF Research had said in a report dated July 15 that the Anasuria cluster would be a game changer for Hibiscus, thus the company’s current price offers investors sizable potential upside, as a trading counter.
“Assuming a production life of 20 years based on Anasuria’s total 2P oil and gas reserves of 45.2 mmboe (million barrels of oil equivalent), Hibiscus’ stake in Anasuria is worth 40 sen per share,” it said.
This was taking into consideration oil price assumption of US$45 to US$99 per barrel from 2016 to 2035.
“We note that oil from the cluster is trading at a premium to Brent crude. We opine that Hibiscus’ purchase price per barrel of US$2.30 pb for the asset is relatively attractive,” it added.
HIBISCS (5199) - Hot Stock: Hibiscus active, jumps as much as 16.22% on renewed buying interest
http://www.theedgemarkets.com/my/article/hibiscus-active-jumps-much-1622-renewed-buying-interest
