“The increase in reserves is the first significant achievement for Sumatec with this asset,’’ Sumatec CEO Christopher Layton Dalton said.
“An additional 10 million barrels of oil is now available under 2P reserves to Sumatec (worth US$175mil in net profit from oil sale) without paying any more than the initial US$95mil,’’ he said in a statement yesterday.
The estimated net profit of US$175mil was based on Brent price of US100 (RM321) per barrel and US$35 per barrel net profit of which Sumatec is entitled to 50% of, after two million barrels of oil has been produced.
Brent crude price was traded at around US$113 per barrel yesterday.
In the same statement, Sumatec has proven 2,059 billion cu ft (bcf) of gas (1 bcf equals to 1 trillion British thermal units) in Rakushechnoye field,
Last year, Sumatec invested US$95mil in the Rakushechnoye oil and gas field and signed a gas development agreement with Markmore Energy (Labuan) Sdn Bhd for the rights to develop and commercialise the project.
Since taking over operations of the field, Sumatec has started its workover programme to ramp up the production to 2000 barrels per day by the end of 2014.