Sumatec Resources

Sumatec Resources

Postby winston » Thu Aug 21, 2014 5:33 pm

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Sumatec CFO sells entire stake, shares and warrants extend rally
July 15, 2014

PETALING JAYA: Sumatec Resources Bhd’s chief financial officer Roshidah Abdullah sold her entire 20 million shares in the company on July 9, making a gross gain of about RM6.16mil.

In a filing with Bursa Malaysia, the company said Roshidah had disposed of her entire 0.64% stake in Sumatec for 30.8 sen per share.

Yesterday, Sumatec’s shares and warrants jumped, extending their Friday rally, which came about after the company said it was proposing to buy Borneo Energy Oil and Gas Ltd for US$250mil (RM785.387mil).

Borneo Energy is a Kazakhstan oil and gas (O&G) outfit that has the rights for exploration and production in two fields in that country.

Sumatec shares hit an intra-day high of 42 sen yesterday, closing the day at 40.5 sen, an 8% increase, with 478 million shares being done. It was the highest close since Nov 14 last year.

Its warrants, Sumatec-WB and Sumatec-WA, meanwhile, jumped 14.75% and 17.54% to close at 35 sen and 33.5 sen, respectively. Sumatec’s shares and warrants were among the most active counters yesterday.

Sumatec also recently appointed Datuk Ahmad Johari Abdul Razak (the brother of Prime Minister Datuk Seri Najib Tun Razak) as an independent non-executive director. Ahmad Johari has a 1.92% direct interest in Sumatec.

The Practice Note 17 firm is currently involved in the development and production of gas for the Rakuschechnoye O&G field in Kazakhstan with Markmore Energy (Labuan) Ltd.

Markmore is the owner of the concession and holds the sub-surface user rights for the Rakuschechnoye field through its unit CaspiOilGas LLP. Businessman Tan Sri Halim Saad owns 99% of Markmore and is also Sumatec’s major shareholder.

It has been reported that Halim owns 24.9% of Sumatec.

Source: The Star
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Re: Sumatec Resources

Postby winston » Thu Aug 21, 2014 5:39 pm

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Dalton's ready for Sumatec challenge BY TEE LIN SAY
Jan 18, 2014

MUCH has been said about Sumatec Resources Bhd, its oilfields in Kazakhstan and most definitely its major shareholder, Tan Sri Halim Saad.

Not much, however, is known about Chris Dalton, the British CEO appointed by Halim to head the company’s turnaround and give it a fresh start.

Investors see Dalton as the “face” of the company but Halim as the one who calls the shots. Work wise though, Dalton is coming to his own.

He’s been in Malaysia for 10 years, and is familiar with the intricacies and sensitivities of doing business here. He has huge plans for growing Sumatec, although he’s quiet about it for now.

“Before we do any rebranding, the first priority is to see the company get out of its PN17 position,” says Dalton.

He says that it was back in 2008, when he was working for Halliburton, he first met Halim. Dalton must have made an impression, because subsequently, when Halim decided to make his comback via Sumatec, Dalton was one of the shortlisted candidates for the CEO position.

“I knew what I was up for when I took up the job in Sumatec. I knew the company’s financial position and its reputation. I was up for the challenge, and I also wanted something different,” says Dalton, who had previously worked for 16 years with Halliburton.

Having worked on rig sites from the North Sea to Venezuela, Colombia and Central Asia, Dalton says that this experience became very helpful when managing Sumatec’s oil production in Kazakhstan.

Dalton has mentioned before that he wants to see Sumatec become an independent oil and gas player with oil reserves of 200 million by 2017. Now, that’s a tall order, and would mean Sumatec acquiring an average of 50 million reserves a year.

“Last year was all about completing the restructuring. We definitely are looking to make asset acquisitions this year. Ramping up our production is very high on the priority list,” says Dalton.

After five years of bleeding, the company’s restructuring scheme, which raised RM452mil in cash, was finally completed last year. The debt free company also looks set to get out of its Practice Note 17 category by the middle of this year.

Sumatec will be announcing its 2013 fourth quarter results next month, and management has guided for a one-off gain from its joint investment agreement that will see the company netting RM86mil. For the nine months to Sep 30, Sumatec is still in the red with losses of RM15.3mil.

While the company may still suffer from reputational issues, its value proposition could be something to consider.

In many ways, Sumatec’s business model is similar to special purpose acquisition company (SPAC) Sona Petroleum Bhd and Cliq Energy Bhd. Both Sona and Cliq are exploration and production companies looking to make their qualified acquisitions on developing or matured fields. The difference here is that Sumatec isn’t a SPAC, but has made its exposure on a proven field.

Dalton says that his main goals for 2014 is to turn in a profit, acquire some assets and ramp up oil production.

So what does Sumatec have to offer investors as this juncture?

In a nutshell, Dalton says that the investment case for Sumatec is a chance to gain access to a proven oil and gas producing field.

There are presently two contracts in the Rakushechnoye oil field (Shelly field), which more or less guarantees a steady stream of income up to 2025.

The first was signed in March 2012, when Sumatec inked an agreement with Markmore Energy (Labuan) Ltd for a product-sharing contract at Kazakhstan’s Rakuschechnoye oil field.

Markmore is the owner of the concession and holds the sub-surface user rights for the Rakushechnoye field through its unit CaspiOilGas LLP up to 2025.

Halim owns 99% of Markmore and is also Sumatec’s major shareholder at 25%.

Source: The Star
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Re: Sumatec Resources

Postby winston » Thu Aug 21, 2014 5:48 pm

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Sumatec confident of next year's profit target
Dec 11, 2013

BY DANIEL KHOO

“The profit for next year is based on an oil development which is planned and running as per schedule and it should be noted that it not include any of the works that would come from this gas agreement today,” Dalton said.

KUALA LUMPUR: Sumatec Resources Bhd is confident of achieving its profit target next year based on present company developments, according to its chief executive officer, Chris Dalton.

He said the confidence was based on the restructuring that was being completed and also due to the company’s financial performance so far.

“The profit for next year is based on an oil development which is planned and running as per schedule and it should be noted that it not include any of the works that would come from this gas agreement today,” he added.

Sumatec, which is a Practice Note 17 firm, signed an agreement yesterday for the development and production of gas for the Rakuschechnoye oil and gas (O&G) field in Kazakhstan with Markmore Energy (Labuan) Ltd.

Markmore is the owner of the concession and holds the sub-surface user rights for the Rakuschechnoye field through its unit CaspiOilGas LLP. Tan Sri Halim Saad owns 99% of Markmore and is also Sumatec’s major shareholder.

The agreement stipulates that Sumatec develop and deliver a minimum of 120 million standard cu ft of gas per day to an offtaker of the gas that would start in early 2017.

Halim, who was present at yesterday’s press conference, said the offtaker would be his own related company located in Kazakhstan that would be involved in downstream gas venture businesses.

Meanwhile, capital expenditure for the gas pipeline and other works would be directly borne by Markmore.

Sumatec said it would receive a fee of US$45mil (RM144.4mil) from 2014 to 2017 from Markmore with an estimated profit margin of 30% to bear the initial startup gas development costs, and fund expertise, among other matters.

When the gas supply commences to the offtaker in 2017, Sumatec will charge an operator fee of 75 US cents per thousand standard cu ft (mmscf) supplied net of costs, according to its press statement that was distributed yesterday.

Dalton said that a daily rate of 120 mmscf was equivalent to US$90,000 per day or US$32.85mil per year with a profit margin of 60%.

Source: The Star
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Re: Sumatec Resources

Postby winston » Fri Aug 29, 2014 6:59 am

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Sumatec may not meet FY14 earnings forecast of RM69m

KUALA LUMPUR: Oil and gas services related Sumatec Resources Bhd posted a strong set of earnings for the first half ended June 30, 2014 but cautioned it might not achieve its net profit of RM69mil.

Sumatec said on Thursday due to the technical requirements to install artificial lift pumps on a number of wells, there has been a delay in bringing some of the wells on to production.

"Barring unforeseen circumstances, the board anticipates that the net profit of the group for the financial year ending Dec 31, 2014 may fall short of the forecasted net profit of RM69mil," it said.

Sumatec said to address the situation, the management would deploy all available resources to complete the remaining works under the workover programme, install artificial pumps and conduct production enhancement on each well, and adding more wells into the workover programme.

It posted net profit of RM6.70mil in the second quarter ended June 30, 2014 compared with net loss of RM3.94mil a year ago boosted by the upstream oil and gas (O&G) activities.

It said on Thursday its revenue was RM13.75mil compared with nil a year ago. Profit before tax was RM11.25mil compared with a loss of RM4.01mil.

"The increase in revenue and profit before tax in this quarter was attributed to the income from the upstream O&G activities," it said.

Sumatec said for the first half, it reported earnings of RM11.17mil compared with net loss of R9.16mil in the previous corresponding period. It recorded revenue of RM27.49mil versus nil a year ago.

It said when compared to the first quarter ended March 31, 2014, the group's turnover in Q2 comprising of revenue from the upstream O&G activities showed a marginal increase.

"Profit before taxation however increased by RM2.39mil in line with lower overheads and direct operating costs," it said.

Source: The Star
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Re: Sumatec Resources

Postby winston » Sat Aug 30, 2014 6:53 am

Sumatec uplifted from Practice Note 17

KUALA LUMPUR: Bursa Malaysia Securities has approved Sumatec Resources Bhd's application to be uplifted from the Practice Note 17 classification.

The regulator said on Friday the upliftment would take effect from 9am on Tuesday, Sept 2.

"Sumatec has regularised its financial condition and level of operations and no longer triggers any of the criteria under paragraph 2.1 of PN17 of the Main Market Listing Requirements," it said in a circular.

The oil and gas services related company posted net profit of RM6.70mil in the second quarter ended June 30, 2014 compared with net loss of RM3.94mil a year ago boosted by the upstream oil and gas (O&G) activities.

Its revenue was RM13.75mil compared with nil a year ago. Profit before tax was RM11.25mil compared with a loss of RM4.01mil.

For the first half, it reported earnings of RM11.17mil compared with net loss of RM9.16mil in the previous corresponding period. It recorded revenue of RM27.49mil versus nil a year ago.

Source: The Star
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Re: Sumatec Resources

Postby winston » Wed Sep 03, 2014 9:01 pm

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Halim Saad set to raise stake in Sumatec to 32% BY TEE LIN SAY

PETALING JAYA: Sumatec Resources Bhd’s major shareholder Tan Sri Halim Saad says he will increase his stake in Sumatec to 32% from 22.06% currently as he is in the company for the long term.

This will be done through the subscription of new shares arising from Sumatec’s acquisition of the Buzachi Neft oil field that is estimated to cost the company US$350mil (RM1.12bil).

In the proposed acquisition, Sumatec would undertake a rights issue which Halim would subscribe for his portion. Halim will accrue the additional shares by purchasing a block that will be put up for sale by a vendor of the Buzachi asset.

“I see Sumatec as a stable flagship for my investment in oil and gas. I am here to stay for the long term,” said Halim in a statement.

Halim, who has about 22% stake in Sumatec, estimated that it would cost him some RM550mil to increase his interest in the company.

On Friday, Sumatec exited its Practice Note 17 status. Its shares closed 1 sen higher to 47.5 sen on volume of 175.2 million shares yesterday.

Last month, Sumatec announced that it was looking to acquire the Buzachi Neft oil field from Borneo Energy Oil and Gas Ltd that has a proven and probable oil reserves of 68.86 million barrels.

Sumatec has said that the acquisition price translated into US$3.63 per barrel.

The US$350mil consideration will be paid via US$225mil (RM720mil) cash and US$125mil (RM400mil) worth of Sumatec shares.

To fund this, Sumatec announced a proposed renounceable rights issue of up to 2.3 billion new Sumatec shares together with up to 2.3 billion free warrants at an indicative issue price of 40 sen per rights share. Sumatec shareholders with two shares will be entitled to subscribe for one rights and the warrant is thrown in free.

In the deal, a vendor of the Buzachi Neft oil field – Abu Talib Abdul Rahman – is offering for sale up to 727.27 million Sumatec shares, which Halim has agreed to take up.

In July, when Sumatec first announced its interest in the Buzachi oilfield, it entered into a framework agreement with the vendor of the oilfield, Borneo Energy Oil and Gas Ltd, for US$250mil. The shareholders of Borneo are Abu Talib and Dr Murat Safin.

The shares for the Borneo Energy shareholders are priced at 55 sen, and this was determined by the Sumatec board of directors.

“I am confident that 55 sen is a good price to buy,” said Halim.

He denied speculation that he would be disposing of his existing shares to help fund the rights issue subscription.

“If I sell the shares now, I may not be able to pick them up later at better prices. I intend to increase my stake, not reduce it.”

Meanwhile, Sumatec cautioned that it might not achieve its net profit of RM69mil for its year ended Dec 31, 2014.

Sumatec said that due to the technical requirements to install artificial lift pumps on a number of wells, there had been a delay in bringing some of the wells on to production.

On this recent warning, Halim said he did not understand what the concern was.

“Production-wise, based on Markmore’s and CaspiOilGas’ records, we are on track to reach the target this year. However it’s probably wise for Sumatec to be on the conservative side and share with their investors.

“Profit-wise, our estimates show that we are within range. You may have to confirm with the Sumatec management,” he said.

Source: The Star
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Re: Sumatec Resources

Postby winston » Sat Mar 14, 2015 5:52 am

Halim Saad raises stake in Sumatec Resources

KUALA LUMPUR: Tan Sri Halim Saad has raised his stake in Sumatec Resources Bhd with the recent purchase of 40 million shares at 20.5 sen each or RM8.2mil.

A filing with Bursa Malaysia showed he bought the shares from Sumatec’s independent and non executive director Chan Yok Peng on March 10.

After the recent purchase, Halim’s direct stake in the oil and gas-related services company increased to 807.04 million shares or 23.17%.

An earlier filing showed its director Chan Yok Peng had disposed of 46 million shares. Chan sold six million shares at 21 sen each and 40 million shares at 20.5 sen and reduced his shareholding to 129.48 million shares or 3.72%.

Sumatec is currently undergoing a business restructuring which will see it entering the upstream sector via a joint investment agreement with Markmore Energy (Labuan) Limited and CaspiOilGas LLP to develop the Rakushechnoye Oil and Gas Field in West Kazakhstan.

In addition to developing the Rakushechnoye Field, Sumatec is looking for opportunities to acquire and develop new and under performing fields.

Its target assets will be mainly onshore, as this reduces the capital cost of infrastructure required.

Source: The Star
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Re: Sumatec Resources

Postby winston » Mon Jan 15, 2018 10:32 am

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Sumatec rises in active trade

15 Jan 2018

KUALA LUMPUR: Sumatec Resources Bhd’s shares rose more than 35% in active trade on Monday, leading the top 10 in volume traded on Bursa Malaysia.


The typically lightly traded stock saw a staggering over 258.49 million shares changing hands.

The trading volume of this counter typically do not reach one million. Last Friday, the traded volume stood at 428,672. Its volume hit 2.6 million last Tuesday.

The counter rose 2.5 sen, or 35.71% to 9.5 sen.

Last Wednesday, Sumatec said said it was informed by its partner CaspiOilGas LLP (COG) that oil production at the Rakushechnoye oilfield in Kazakhstan will reach 1,500 barrels of oil a day (bbl/d) by end of March.

Another 1,000 barrel bbl/d can be added to the oil production after the completion of 12 well workovers by end of August.

Source: The Star

https://www.thestar.com.my/business/bus ... kflQ8bR.99
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Re: Sumatec Resources

Postby winston » Mon Jan 15, 2018 10:37 am

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Sumatec sees Rakushechnoye oil output to reach 1,500 barrel a day by end of March

10 Jan 2018

KUALA LUMPUR: Sumatec Resources Bhd said it was informed by its partner CaspiOilGas LLP (COG) that oil production at the Rakushechnoye oilfield in Kazakhstan will reach 1,500 barrels of oil a day (bbl/d) by end of March.

Another 1,000 barrel bbl/d can be added to the oil production after the completion of 12 well workovers by end of August, the company said in a filing with Bursa Malaysia today.

“The total oil production can further increase to about 7,500 bbl/d with the drilling of two new deep Triassic wells by end of 2018,” it said.

Under the joint investment agreement between Sumatec and COG and the field development plan, Sumatec also has claim on associated gas by way sharing of condensates.

The report also said that based on a US$50 per barrel price of oil, Sumatec can expect a net of between US$30 to US$35 for every barrel of oil produced.

Under the joint investment agreement signed in March 2012, Sumatec is entitled to 100% of the profit for the first two million barrels. From the third year onwards, the profit will be split 50:50 between Sumatec and COG.

Source: The Star

https://www.thestar.com.my/business/bus ... 7yWBPDf.99
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Re: Sumatec Resources

Postby winston » Tue Jan 23, 2018 12:56 pm

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Malaysia's Sumatec Resources Signs Pre-Sale Gas Agreement

By Gho Chee Yuan

KUALA LUMPUR (Jan 22) -- Malaysia's Sumatec Resources, an oil and gas service provider, said Monday it has inked a presale gas agreement with Kazakhstan-based NIPIneftegas led consortium.

The deal includes a sale of about 36.5 million barrels of oil equivalent of gas over 15 years at market price, the company said in an exchange filing.

The consortium will convert the feed gas into petroleum products through a proprietary gas to liquid technology.

Source: Asian Review

https://asia.nikkei.com/Markets/Nikkei- ... -Agreement
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