KUALA LUMPUR: Sumatec Resources Bhd

 said it was informed by its partner CaspiOilGas LLP (COG) that oil production at the Rakushechnoye oilfield in Kazakhstan will reach 1,500 barrels of oil a day (bbl/d) by end of March.

Another 1,000 barrel bbl/d can be added to the oil production after the completion of 12 well workovers by end of August, the company said in a filing with Bursa Malaysia today.

“The total oil production can further increase to about 7,500 bbl/d with the drilling of two new deep Triassic wells by end of 2018,” it said.

Under the joint investment agreement between Sumatec and COG and the field development plan, Sumatec also has claim on associated gas by way sharing of condensates.

The report also said that based on a US$50 per barrel price of oil, Sumatec can expect a net of between US$30 to US$35 for every barrel of oil produced.

Under the joint investment agreement signed in March 2012, Sumatec is entitled to 100% of the profit for the first two million barrels. From the third year onwards, the profit will be split 50:50 between Sumatec and COG. – thestaronline


Business, TextNews

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