Sumatec agrees deal with Markmore Energy

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Sumatec agrees deal with Markmore Energy

Sumatec agrees deal with Markmore Energy

Tuesday, November 29, 2011
  • suma
Agreement expected to help Sumatec financially.

KUALA LUMPUR: Sumatec Resources Berhad has signed a framework agreement with Markmore Energy (Labuan) Ltd for the proposed award of a production sharing contract (PSC) by CaspiOilGas LLP in the Shelly oil field in Kazakhstan until Aug 25, 2025.

CaspiOilGas is a wholly-owned subsidiary of Markmore Energy.

Sumatec said the PSC awarded to the company include the entire 354.45 square kilometres of the oil field located onshore next to the Caspian Sea in south-western Manghystau province.

The undertaking of the proposed PSC is within the company's capabilities and the PSC will provide a stable recurring income to facilitate the rejuvenation of its operations, said Sumatec in a filing to Bursa Malaysia.

The proposed PSC forms an integral part of the proposed regularisation exercise under practice Note 17 (PN17) of Bursa Malaysia Securities main market listing requirements and is expected to return Sumatec to a better and sustainable financial standing and profitability, it said.

On financial impact, Sumatec said the PSC award is expected to contribute positively to its future earnings.