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Monday, January 27, 2014

More oil, gas find for Sumatec?

Source:

RAKUSHECHNOYE FIELD: New Kazakhstan discovery may warrant change in earnings forecast

Sumatec Resources Bhd is believed to have found a larger pool of oil and gas at its oil field in Kazakhstan, people familiar with the matter said yesterday.

A Sumatec spokesman declined to comment as the company is still getting feedback from its people in the Central Asian country.

“We are evaluating the data and with the rollout of commercial production soon, we will make an announcement to the stock exchange once we have digested the new information,” the spokesman added.

Business Times understands that Sumatec will file a statement to the stock exchange before the week is over.

The discovery of additional oil and gas resources may warrant a change in its forecast net profit of RM86 million for the 2013 financial year and RM69 million for 2014.

Tan Sri Halim Saad, who controls some 25 per cent of Sumatec, reportedly told shareholders at the company’s last extraordinary general meeting that it expects oil production to hit two
million barrels by the third quarter of next year.

Sumatec currently manages the Rakushechnoye oil and gas field in Mangystau, Kazakhstan, after reaching an agreement with Markmore
Energy (Labuan) Ltd and CaspiOilGas LLP for the commercial development and production of the field.

Markmore Energy and CaspiOilGas hold the concession for the field until 2025 and both companies are controlled by Halim.

As part of the deal, Sumatec will have to reimburse Markmore Energy the cost of exploring and developing the oil field amounting to US$135 million (RM450 million), and spend another
US$60 million on infrastructure to speed up production.

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