Sumatec Resources a step closer to full control of oil & gas field in Kazakhstan

PETALING JAYA: Sumatec Resources Bhd, which has a number of acquisition proposals in hand, has entered into a heads of agreement with Tan Sri Halim Saad-controlled Markmore Sdn Bhd to acquire the entire equity interest in Markmore Energy (Labuan) Ltd for US$370 million (RM1.55 billion), which will see the group gaining full ownership of the Rakushechnoye oil and gas field in Kazakhstan.
Upon the signing of the share sale agreement, Sumatec will formally terminate the pending corporate exercises announced earlier, including the proposed acquisition of 100% equity interest in Borneo Energy Oil and Gas Ltd for US$290 million (RM1.02 billion) and 100% stake in Markmore Energy (Labuan) Ltd for US$250 million (RM1 billion) as well as a private placement and arights issue.
Explaining the rationale behind the latest proposed acquisition, Sumatec noted that currently it is only entitled 50% of the profits from the oil produced at the Rakushechnoye oil and gas field, but the Markmore Energy buy will enable it to effectively own the entire oil and gas reserves at the field.
In addition, Sumatec’s profile will be enhanced with greater flexibility on future fund raising as well as strengthen its financial and cash flow position.
Sumatec’s share price was unchanged at 5 sen today, with some 1.7 million shares changing hands.