Tuesday March 13, 2012

Sumatec to finalise regularisation plan plan soon

PETALING JAYA: Sumatec Resources Bhd said it expected to finalise the details of its proposed regularisation plan under Practice Note 17 by the second quarter of this year and complete it by the fourth quarter.

Sumatic said this in a statement in response to Bursa Malaysia's query on the framework agreement for the proposed award of joint investment agreement for Rakushechnoye Oil and Gas Field (Shelly Oil Field) in Kazakhstan, which formed part of the company's proposed regularisation plan.

Sumatec said it would commence the production of petroleum from the oil field for and on behalf of CaspiOilGas LLP (COG) immediately after completion of its proposed regularisation plan, and upon fulfilment of its payment obligations to Markmore Energy (Labuan) Ltd (Mell)/COG.

“The commencement of operations from the Shelly Oil Field has begun since 2007 by COG,” Sumatec said, adding that the oil field was currently producing about 1,000 barrels of oil per day.

It said the joint investment agreement might be extended by mutual agreement of Sumatec, MELL and COG, subject to the government of Kazakhstan's renewal of COG's concession of the Shelly Oil Field (expiring in Aug 25, 2025), while the duration of the extension depended on the balance reserves of oil and gas available at the field at the expiry date.

The initial working capital required for the joint investment agreement was US$10mil (RM30.3mil) while the initial capital expenditure required was US$60mil (RM181.7mil), it said.

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