Sumatec to purchase entire shares In Markmore Energy for RM1.55 billion

Sumatec Resources Bhd has entered into head of agreement with Markmore Sdn Bhd for the purpose of recording their understanding and intention in respect of the proposed acquisition of entire equity interest in Markmore Energy (Labuan) Ltd for purchase consideration of RM1.55 billion.

In a filing to Bursa Malaysia today, Sumatec said that Markmore Energy, through its wholly-owned subsidiary, Markmore Central Asia B.V, holds the entire participatory in CaspiOilGas LLP, which in turn the concession owner and operator of the Rakushechnoye Oil and Gas Field in Kazakhstan.

Under a joint investment agreement entered between Sumatec, Markmore Energy and Caspi Oil Gas in 2012, Sumatec had been appointed to carry out all operations relating to oil production from Rakushechnoye, entitling the group the entire profits for the first two million barrels of production and thereafter 50 %.

“The proposed acquisition is expected to enable Sumatec to effectively own the entire oil and gas reserves at Rakushechnoye and is expected to enhance the effectiveness and efficiency of its operations.

“The proposed acquisition is also a step in increasing the hydrocarbon reserves for Sumatec to arrest its natural production decline, thereby ensuring the company’s continuous growth,” it said.