Troubled oil and gas counter Sumatec Resources Bhd expects to see brighter prospects ahead after its regularisation plans are completed, targeted by end-August.
Shareholders passed the nine resolutions proposed and tabled at its EGM yesterday.
Major shareholder Tan Sri Halim Saad told reporters after the meeting that the company would be debt-free following the restructuring, which centred around the injection of his Kazakhstan oil and gas assets into the PN 17 company.
This was done through the joint investment agreement Sumatec signed with Halim’s vehicle Markmore Energy (Labuan) Ltd and CaspiOilGas LLP (a subsidiary of Markmore Energy Sdn Bhd) last April.
The agreement enables Sumatec to participate in the development and production of oil and gas in the Rakushechnoye oil field (or better known as the Shelly oil field) until 2025, which transforms it into an exploration and production operator from a services provider.
CEO Christopher Layton Dalton said: “Our strategy is to explore and produce oil from mature onshore assets as the method is less risky.”
He also said it aimed at exiting PN 17 status in the second quarter of 2014.
There were five operational and producing wells out of the 47 wells in the field, he added.
Sumatec will get 100% net profit from the sale of net volume of oil or gas produced for the first two years. From the third year onwards, the profit sharing will be on a 50:50 basis.
It projected earnings before interest, taxes, depreciation and amortisation of RM107.9mil and net profit of RM69.3mil in the financial year ending Dec 31, 2014.
Some key risks the company identified included delays and cost overruns, and volatility in oil prices.
Shareholders passed the nine resolutions proposed and tabled at its EGM yesterday.
Major shareholder Tan Sri Halim Saad told reporters after the meeting that the company would be debt-free following the restructuring, which centred around the injection of his Kazakhstan oil and gas assets into the PN 17 company.
This was done through the joint investment agreement Sumatec signed with Halim’s vehicle Markmore Energy (Labuan) Ltd and CaspiOilGas LLP (a subsidiary of Markmore Energy Sdn Bhd) last April.
The agreement enables Sumatec to participate in the development and production of oil and gas in the Rakushechnoye oil field (or better known as the Shelly oil field) until 2025, which transforms it into an exploration and production operator from a services provider.
CEO Christopher Layton Dalton said: “Our strategy is to explore and produce oil from mature onshore assets as the method is less risky.”
He also said it aimed at exiting PN 17 status in the second quarter of 2014.
There were five operational and producing wells out of the 47 wells in the field, he added.
Sumatec will get 100% net profit from the sale of net volume of oil or gas produced for the first two years. From the third year onwards, the profit sharing will be on a 50:50 basis.
It projected earnings before interest, taxes, depreciation and amortisation of RM107.9mil and net profit of RM69.3mil in the financial year ending Dec 31, 2014.
Some key risks the company identified included delays and cost overruns, and volatility in oil prices.
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