KUALA LUMPUR: Hibiscus Petroleum Bhd has raised its estimate of proved and probable (2P) oil reserves at its Teal West field in the UK by 32% to 4.5 million barrels of oil (MMbbl).

2P oil reserves refer to oil that is able to be produced with a high degree of certainty (proved) plus additional reserves that have at least a 50% chance of being recovered (probable).

While the group had previously reported 2P oil reserves of 3.4 MMbbl, fluids samples from the well showed a deeper than estimated oil-water contact, which means that the oil extends deeper than expected. According to Hibiscus Petroleum, this indicates a larger oil-bearing zone than originally forecast.

In an announcement to the stock exchange, the company said drilling is completed with backload and demobilisation activities currently ongoing.

As previously guided, subsea installation activities are expected to take place in early 2Q26, with first oil in mid-2026.

It said average oil production from the Teal West field for FY2027 is estimated at approximately 7,000 bbl/day, adding over 390% to Hibiscus’ UK oil & gas production of 1,778 boe/day in FY25. Fluids from the Teal West field will be processed and exported from the Anasuria floating, production, storage and offloading facility. 

Based on the group’s existing projections of its UK operations, it expects minimal taxes to be paid on its oil and gas operations for FY2026 and FY2027, due to available capital allowances generated from its capital expenditure investments.

“We are very pleased with the results from the Teal West well. These improved 2P reserves are a positive development that will take us to our 2026 target of achieving 35,000 boe/day which is a 32% increase to 2025 production of 26,500 boe/day,” said managing director Datuk Kenneth Pereira.

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