Sumatec Resources Berhad SUMATEC 10 th July 2013 Presentation to Fund Analysts By Chris Dalton Chief Executive Officer THE Leading Malaysian Independent Oil & Gas Company SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Key Messages • Deliver Long Term Profitable Growth • Proven Mature Asset Portfolio • Creating Value for Share Holders SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Why Sumatec is Different! Operator: E&P’s Exploration Companies E&P SUMATEC Hibiscus Equity / Concession Production Sharing Contracts (PSC) Joint Investment Agreements (JIA) Scomi SapuraKencana Uzma Service UMW Dialog Wah Seong Service Companies Risk Service Contracts SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Why Kazakhstan Largest land locked country & 9 th largest globally GDP Per Capita 13,892USD (2012 estimate) Geopolitical Advantages Developed economy and legal system Stable political environment Well established Oil & Gas legislation Established export routes for sale of hydrocarbons Concession contracts as opposed to PSC & RSC Geological Advantages 30billion bbls of proven reserves (ranked 11 th in the world, largest in central asia) 1.6mmbbl/day production, double by 2020 Low risk onshore mature assets High potential of increasing reserves in our asset SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Why Mature Assets • 70% of world production is from Mature Assets • New Technology is increasing recovery factor (RF) from 20% to 40% • Many Mature Assets today have only 15-20% RF, leaving un tapped potential • Majority of Assets are too small for Super Majors to operate at a cost effective level • Proven Reserves & Track Record Reduces Capital Risk < 1 yr 3 - 5years 1 yr 2 – 3 years 15 – 20 years Bidding/ Exploration Appraisal Early Production Commercial Scale Acquisition Production • Licensing Round • Geological Study • Delineation wells • Construction of • Upgrade surface facilities • Contract • Seismic Survey • Confirm Reserves surface facilities • Expanded drilling Negotiation • Exploration Wells • Development • Drilling of program • Work Program • Reservoir Concepts production wells • Fiscal Regime Mapping $5-10m $30-40m $15-20m $30-40m More than $50m • High risk mainly on exploration 140 • Low certainty of oil/ gas content Risk 120 • I f there is no oil and gas find, USD million Profile the exploration costs will be 100 totally lost 80 • No more exploration risk • Oil reserves confirmed and Cumulative Cost 60 certified Profile 40 20 Current status of Rakushechnoye SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Rakushechnoye Investment What will Sumatec pay: • 10M USD Signature Bonus • 85M USD Historical Costs • 40M USD Performance Guarantee to be offset against Royalty @ USD5/BBL What will Sumatec receive: • 100% of Net Income for first 2M BBLS • 50% of Net Income after 2M • Concession period to 2025, can be extended with approval of RoK MOG • All CAPEX & OPEX recovered as part of petroleum operations • Sustainable growth in PROVEN Mature Asset • Initial Investment recovered in first 3 years profits SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Entry Price for Sumatec Compared to Peers SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Rakushechnoye Field is a Mature Asset • Concession area: 354km2 with subsurface user rights till 2025 • 1 st Well Drilled in 1974 • 47 Wells Drilled • 3D Seismic acquired 2008 SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Rakushechnoye Field Reserves Oil Gas Total Oil and Gas ( m m b m m boe) 10 Reservoir Zones: 8 gas / gas condensate, Proved 5.2 17.2 22.4 2 oil saturated. Proved + Probable 32.8 89.3 122.1 4.7 mmbbl of oil and 51BSCF of Gas Proved + Probable + 74.7 257.0 331.7 Possible has been produced which is less 6000SCF = 1BOE. than 10% of the original oil and gas Reserves Certified by SRK Consulting (Australia) Pty Ltd February 2013 in place Conservative RF: “20% RF for Oil & 25% RF for Gas” Reserves from 9% of Concession Area Identified Hydrocarbons in south with potential to double total reserves SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Proved Reserves is Low Risk, High Potential of Additional Reserves • Normally pressured at reservoir • Compartmentalized in the north , a lot of by passed oil • Two main reservoir drainage areas – north – commercial , South untested • Formations have more lateral extension compared to north. • Less faulting, natural closures • Southern area yet to be tested for commercial potential. Is not part of 2P reserve calculations • Triassic reservoir: gas condensate and oil SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Rakushechnoye Development Schedule Phase 1: Phase 2: Phase 3: 2013 2014-2015 2016> Stimulation & Workovers Sidetracks New Wells 1000-2000bbl/day 4000-6000bbl/day >8000bb/day Oil & Condensate Production Oil Production Oil & Gas Production with Gas Injection New Processing & Injection New Storage Facility Pipeline for Oil & Gas Export Facilities SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Well Count & CAPEX Phase 1: Phase 2: Phase 3: 2013 2014-2015 2016> Work Program 2013 2014 2015 2016 2017 Total Workovers & Stimulation Jobs 6 12 2 2 2 24 Sidetracks from existing wells 0 4 4 0 0 8 New Wells 0 0 2 2 2 6 Well Remedial work 0 0 5 5 5 15 Total 6 16 13 9 9 53 Stimulation & Workovers Sidetracks New Wells 1000-2000bbl/day 4000-6000bbl/day >8000bb/day Summary $ in 1000's Total 5 Year Budget Year 2013 2014 2015 2016 2017 Total Capex $ 3,806 $ 29,318 $ 43,215 $ 18,550 $ 19,470 $ 114,359 Workover & Stimulation: 200-400K USD Sidetracks: 1M-2M USD New Wells: 5-6M USD Field Upgrades: 25M USD: Processing facilities, Storages Planning : 2M USD SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Risk Assessment SUMATEC THE Leading Malaysian Independent Oil & Gas Company
5 Year Business Targets Large Independent Oil & Gas Company >200 million bbls Proved Reserves 8000bbls/day (2.9M bbl/year) 2 Million Bbls From Rakushechnoye New Acquisitions Revenue RM Rakushechnoye Operations Rakushechnoye SUMATEC THE Leading Malaysian Independent Oil & Gas Company
SUMATEC New Management and Strategy Oil & GAS New Board of Directors & Top Level Management Safety Culture embedded in all out activities Minimizing Environmental Impact Focus on Innovation and Efficiency High Ethical Standards demanded from all employees Rebranding of the Company SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Redesigned www.sumatec.com Launched June 13 SUMATEC THE Leading Malaysian Independent Oil & Gas Company
New Investor Relations Section SUMATEC THE Leading Malaysian Independent Oil & Gas Company
New Management Executive Team Chris Dalton Zulkifly Mohamad Roshidah Abdullah Chief Executive Officer Chief Operations Officer Chief Financial Officer Based in Almaty Joined Sumatec June 2012 Joined Sumatec April 2013 17 Year Industry Experience 24 Years Experience in Financial To Be Appointed in August 2013 with Halliburton Management & Operations 30+ Years Industry Experience with Schlumberger including 10 Years as Country Manager in Kazakhstan Technical Leaders Chingis Nabiyev Samuel Elliot Harvey Bakhtiyar Jexenbiyev Technical Director Operations Director QHSE Director Based in Almaty Based in Aktau Based in Aktau To Be Appointed in To Be Appointed in August To Be Appointed in August August 2013 2013 2013 13 Years Industry 15 Years Industry 12 Years Industry Experience Experience with Experience with with Multi-National Schlumberger Schlumberger Corporations SUMATEC THE Leading Malaysian Independent Oil & Gas Company
Management KPIs Shareholder Staff & Talent Value Daily Company Production Values Increase Total Cost per bbl Reserves SUMATEC THE Leading Malaysian Independent Oil & Gas Company
SUMATEC Oil & GAS THE leading Malaysian Independent Oil & Gas Company • Large Independent Deliver Long Term Profitable Growth • Sustainable growth from initial proven reserves • Rakuschechnoye Low Risk / High Potential Proven Mature Asset Portfolio • Acquire own Assets with 24 months • Free Cash Flow from Oil Sales Creating Value for Share holders • Attractive Profit Margin & Dividend SUMATEC THE Leading Malaysian Independent Oil & Gas Company
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