Sumatec will fly anytime if oil revenue reported

Page 49 of annual report.

Noticed that some 16.8m ESOS shares exercised.

Grant II- consecutive 3 months productions of 2,000 barrels per day and uplift PN17.

Grant III- Accumulated 2m barrels production at profit of USD35/barrels.

Confused......

Market have been losing faith to Sumatec after 24.08.15 shares price crashed.

- Hassan Merican?
- USD800m methanol plant?
- billions ringgit revenue?
- Petronas buying gas?

Etc...........

Wait and see....

Another reason could be transfer shares to nominees to vote in favour to resolution to be proposed.

This may be the reason that Tan Sri is cashing out recently.

With current change of Companies Act, it given the change to Sumatec to place cheap shares to source new fund before RI.

RI will not happening so soon until existing operation proved economically feasible. To fund the operation, Sumatec need fresh fund, bank borrowing (not possible due to recent law suit), major shareholder (not possible as no funding available to underwrite the RI, that is main reason the RI not happening) and private placement.

If the money not coming back to Sumatec, it is hard to get BNM, SC and Bursa to approve subsequent proposal.

I persumed that MYR180m includes MYR100m deposit paid to Borneo Energy. The lawyer now may faced potential claim by releasing the deposit to Borneo Energy without completing the deal.

Tan Sri USD800m methanol plant?

Just wondering how much had been drawdown from Exim Bank to develop the gas plant

He need to get the deal move. Else he need to return MYR100M from 1st PP, MYR54m from 2nd PP and USD45m for gas development

He need bullet for RI/PP. Cash out now and subscribe the shares.

Bursa decision on RI should be at corner.

All operating cash generated from operation and PP gone to COG and assets all booked in at COG. I am not sure on the progress. Just wait for coming QR to find out more.

1. RA to relinquish CG extended to Suma Shipping Group (this suppose to be done in previous RI) (RA's deal aborted, Semua Group in process to liquidate all assets to settle debt. PDZ might be potential suitor to acquire all vessels from Semua Group)
2. Loan from EXIM Bank- to monitise the gas assets while gas plant under construction.(Due to delay in PDZ's deal, Sumatec looking for alternative. Sumatec should claim loss of profit due to delay from Tan Sri instead gearing up to solve problems)
3. PDZ- to monetise gas assets (Lapsed)
4. Buy out Rakushechnoye oil field- to eliminate potential conflict interest arisen from gas assets.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5259461

PDZ's gas deal lapsed.

http://www.sumatec.com/about-board-of-directors.php

Liew Boon Keat also Non-Independent Non-Executive Director

Anyone interested may apply.

http://www.jobstreet.com.my/en/job/finance-manager-3123634?fr=21&src=12

The initial delay mainly due to delayed in approval from BNM on oversea investment. Later stage were due to unfavorable market conditions to execute the RI.

The approval from BNM and Bursa become even more challenging now considering the earlier promises yet to deliver......

The application for extension of RI to acquire Borneo Oil yet to approve by Bursa. Should it be rejected by Bursa, it will entitled to receive USD30m from its vendors.

With USD30m on hand and MYR54m raised in latest Private Placement, Sumatec should have sufficient cash flow to monetise Rakushechnoye Oil Field.

With fixed gas operator fee of USD0.75/mcf and minimum off take of 100mcf by Kenmakmur, Sumatec should generate USD27m profit per annum. Additional profit contribution from oil will increase it profitability.

......

The worries finally come. Based on latest QR, there were RM300m contingent liabilities and so far RM210m may potentially turn into liabilities.

To mitigate the impacts:-
1. Monetise Shelly's field especially gas.
2. Collect the remaining RM20m from Hoe Leong Corporation Ltd immediately (Balance of proceed from disposal of Semua Shipping Group)
3. Dispose all vessels held under Semua Shipping Group to reduce the exposure of corporate guarantee extended. Semua Shipping Group now ceased operation as announced by Hoe Leong. http://www.businesstimes.com.sg/companies-markets/semua-shipping-ceasing-operations-says-hoe-leong-corp

Who want to let go the shares at current pricing?

My guess only. The next move will be "China factors"...

Interesting....

At market capitalisation of RM348m, minority interest shares valued at RM261m. Tan Sri should privatise the company as after less USD20m deposit paid to Borneo Oil, RM48m from recent right issue and this two years profits. The future earning of Sumatec actually come to him as free..

Caspian Oil&Gas and Buzaichi with huge debts and "oil assets" are worth billions of ringgit. SUMATEC is producing profit from existing oil wells and gas development profit of USD15m per annum worthless...

When management release the update on gas field development, how the shares price will react..

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5083957

Happy investing...

Immediate good new should be weakening of USD to make the investment cheaper. Then should be resume production to monitise the gas. Profit from gas alone could be RM100m if follow Sumatec's plan.

It can be wrong but it cannot be that the oil asset not generating any oil and gas. The only possibility is lesser only..

LOL.

Sumatec had raised more than half billions within 2 years. There are still billions deals pending completion... Be patient..

http://www.bursamalaysia.com/market/listed-companies/company-announcements/50839572

Semua had been deconso from Sumatec after disposal to Hoe Leong Singapore pending completion. Hoe Leong could not assume the debts/corporate guarantee which may be the main reason the deal is still pending.

I said no tiger show... Sumatec sure got show la...

1. RA to relinquish CG extended to Suma Shipping Group (this suppose to be done in previous RI)
2. Loan from EXIM Bank- to monitise the gas assets while gas plant under construction.(Due to delay in PDZ's deal, Sumatec looking for alternative. Sumatec should claim loss of profit due to delay from Tan Sri instead gearing up to solve problems)
3. PDZ- to monetise gas assets
4. Buy out Rakushechnoye oil field- to eliminate potential conflict interest arisen from gas assets.

There is no short cut to create genuine multi billion ringgit company, be patient....

No show....

Based on what Sunatec has on the plates, it look like big shows are coming....

Problems are if the shows have sufficient audience?

Big or small. 10 days to go....

This is exclude portion that not due yet......

In recent RPT circular to shareholders, Markmore has overdue of RM6m due to Sumatec.

Sumatec still has USD10m with Markmore to off-set future oil tributes.

Need no worry. Tan Sri will has ideas to monitise the assets. Please don't forget Tan Sri is qualified accountant and managed conglomerate before...

Bingo.. Monetise Rakushechnoye oil and gas field top priority. RI and acquisition for Borneo Oil will rescind soon.

Solving Rakushechnoye oil and gas field's problem is top priority for all parties rather than new acquisition. Markmore cannot afford to delay as gas development as gas payment are as per well head. PDZ's deal delayed, Markmore need to utilise Sumatec's clean balance sheet to secure financing to ensure gas could be enter into market soonest while waiting for completion of PDZ's deal.

Sumatec's financing is ready for the pipeline project, execution is matter of time only.

Sure more good announcements to follow.......

Private placement completed on 22.04.16 raised RM48.7m (USD11.6m) for oil field development. It should provide additional funding to drill more wells.

Need no worry, Sumatec still can propose another PP or ESOS to raise capital. Conversion of warrants, payment by shares etc. There are many options to raise fund. The advantage of being listed company is ability to raise fund from public.

Private placement completed on 22.04.16 raised RM48.7m (USD11.6m) for oil field development. It should provide additional funding to drill more wells.

Need no worry, Sumatec still can propose another PP or ESOS to raise capital. Conversion of warrants, payment by shares etc. There are many options to raise fund. The advantage of being listed company is ability to raise fund from public.

Private placement completed on 22.04.16 raised RM48.7m (USD11.6m) for oil field development. It should provide additional funding to drill more wells.

Need no worry, Sumatec still can propose another PP or ESOS to raise capital. Conversion of warrants, payment by shares etc. There are many options to raise fund. The advantage of being listed company is ability to raise fund from public.

After all, Sumatec is not the manage by group of people with integrity problems.

As shareholders you have every right to share your views with regulatory provided the facts. This at least will weight when granting next approvals to Sumatec.

Gas is guarantee fixed profit based on production level. Sumatec may negotiate with concession holder to strike best deal for Sumatec considering the delay in gas project by concession holder. "You help me, I help you" and "stay focus" may relevant here.

If I interpreted the circulars issued correctly. The Rakushechnoye field is good buy for Sumatec as it has full share of profit for first 2m barrel oil and 50% of profit from remaining. Assuming the oil profit only manage to breakeven at current price. The gas profit should be main concern as it is double the oil reserve and Sumatec being paid for USD0.75 per mscf at well head. Based on minimum off take 120,000 mscf per day, it translate into USD90k profit per day from gas alone. Good profit?

Happy investing....