Sumatec optimistic on second half performance

KUALA LUMPUR: Sumatec Resources Bhd expects to establish a steady revenue stream in the second half of the year on increased drilling activities.
Its first-quarter net profit ended March 31, 2015 jumped more than four fold to RM19.44 million from RM4.47 million in the previous corresponding period.
Speaking to reporters after the company's AGM here yesterday, CEO Chris Dalton noted the drilling works for newly acquired Buzachi fields in Kazakhstan will start by year-end.
However, he explained that it would still depend on the rights issue exercise, which is awaiting the approval from Bank Negara Malaysia.
"If we can complete the rights issue in a month or two, we should be able to execute these wells in the fourth quarter," he added.
The rights issue is expected to raise up to RM1.1 billion for Sumatec, to partly fund the acquisition of the Buzachi fields.
The company plans to drill eight new wells within six to 12 months upon the completion of the acquisition deal, potentially bringing total production to 1600 barrels per day from the current 1000 barrels per day.