(Alliance News) - Polo Resources Ltd said Wednesday that 8.8% investee Hibiscus Petroleum Berhad has kept its annual oil production guidance, but has warned on potential revisions following the oil price plunge.
Shares in Polo - which invests in natural resources firms - were 12% lower at 2.22 pence on Wednesday in London.
The Malaysian oil firm's output guidance for the year remains between 3.3 to 3.5 million barrels, but Hibiscus warned that there could be future revisions, as it mulls executing maintenance activities that require a shutdown.
This could allow future production to be optimised through higher uptime and potential higher prices.
In addition, the company said it will revisit capital projects and request oilfield service contractors to further optimise the pricing levels for such projects.
Hibiscus said the only projects to be pursued will be those that show "viability and a reasonable payback period", while more long term projects will not be pursued as aggressively as originally expected.
For January and February, the Malaysian oil firm said net daily oil production from the North Sabah and Anasuria assets exceeded the levels recorded for the second quarter to the end of December, which was at 6,318 and 2,680 barrels per day respectively.
During the third quarter ending March 31, Hibsicus said it had conducted two of three planned oil offtake before the sharp price drop in oil, with the third scheduled for later in March.
Looking ahead, Hibiscus has planned a further three offtakes up to the fourth quarter ending June 30, bringing the total offtakes for financial 2020 year to 11.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
