Baku, Azerbaijan, June 25
By Elena Kosolapova - Trend: The fresh review of Malaysian Sumatec Resources Berhad's oil and gas field Rakushechnoye in Kazakhstan has yielded a 14.5 percent increase in proven oil reserves to 129 million barrels, the company said on June 24.
"An additional 10 million barrels of oil is now available under proven reserves and probable reserves to Sumatec (worth $175 million in net profit from oil sales) without paying any more than the initial $95 million,'' Sumatec CEO Christopher Layton Dalton said.
The estimated net profit of $175 million was based on Brent price of $100 per barrel and $35 per barrel net profit of which Sumatec is entitled to 50 percent, after two million barrels of oil has been produced.
Moreover Sumatec has proven 2.059 trillion cubic foots of gas in Rakushechnoye field.
Sumatec invested $95 million in the Rakushechnoye oil and gas field and signed a gas development agreement with Markmore Energy (Labuan) for the rights to develop and commercialize the project in 2013.
Since taking over operations of the field, Sumatec has started its workover program to ramp up production to 2,000 barrels per day by the end of 2014.
Sumatec was established in 1979 as a service provider in the downstream sector of the oil and gas industry. The company is currently going through a business re-structuring program 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.
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