Hot Stock Sumatec rises 7% after go-ahead for Rakuscheknoye O&G field

Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Wednesday, 04 December 2013 11:54
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KUALA LUMPUR (Dec 4): Shares of Sumatec Resources Bhd rose as much as
7% as the downstream oil & gas (O&G) player is expected to start work on the
Rakuscheknoye O&G field by mid-January 2014.
The company, linked to former prominent corporate figure Tan Sri Halim Saad,
has announced that its Rakuscheknoye O&G field operation agreement with
CaspiOilGas LLP (COG) has become effective.
At 11.23 am today, Sumatec rose 2 sen or 7% to trade higher at 30 sen. The
top most active counter saw heavy trades of some 72 million shares.
Rising in tandem was its warrant Sumatec-WB, which rose 2.5 sen or 12% to
trade at 24 sen. The second most active counter saw heavy trades of some 26
million shares.
In its announcement to the stock exchange on Monday, Sumatec said COG has
been given the rights to develop and extract oil and gas at the Rakuscheknoye
onshore oil field in Kazakhstan.
COG is a wholly-owned subsidiary of Markmore Energy (Labuan) Ltd (MELL),
which is 99.99% owned by businessman Halim who was in the news recently
for his RM2 billion legal suit against the government.
Earlier, Sumatec had signed a joint investment agreement (JIA) on the oilfield
with MELL.
As the designated operator of the oilfield under the JIA signed on Aug 2 this
year, Sumatec said it is making arrangements with contractors to mobilise the
first rig.
“The rig is expected to start operation by the middle of January next year to commence workover operations on 11 wells,” said Sumatec.
Under the JIA, Sumatec should carry out all operations related to the production of hydrocarbon from the oil field and complete all
operations from the date of JIA until Aug 25, 2025.
In a note today, Kenanga Research said Sumatec would see immediate technical support and resistance levels at 28 sen and 29 sen
respectively.