In a filing with Bursa Malaysia, the oil and gas exploration and production company said that under the deed, COPA has the option to acquire TDO’s share of joint venture (JV) production.

“However, the ROFR mechanism gives TDO ample opportunity to capture market parity pricing from COPA or otherwise, a third-party buyer,” it said.

Hibiscus said that for a small explorer such as TDO, the ROFR deed provides TDO with a relatively simple, demonstrable, and credible path to market, with an ability to maximise value in that process.

“COPA group companies are JVs and operators of VIC/P79 and T/49P exploration permits in offshore Commonwealth waters of the Otway Basin, located along Australia’s southern coast.

“TDO retains a 20% participating interest in both permits,” it added.

3D Energi executive chairman Noel Newell said the finalisation of this agreement reinforces the JV’s commitment to fast-tracking commercialising any discoveries from the upcoming drilling programme.

“The JV is aligned in aiming to bring gas to market in the shortest timeframe achievable at a time when new gas supply is desperately needed on Australia’s east coast,” he said.

At the close of trading, Hibiscus’s share price was down by 1 sen or 0.42% at RM2.35, giving the group a market capitalisation of RM1.89 billion.