Wintoni...game over.

SUMATEC-UPLIFTMENT OF PN17 STATUS
SUMATEC RESOURCES BERHAD

SUMATEC has regularised its financial condition and level of operations and no longer triggers any of the criteria under paragraph 2.1 of Practice Note 17 ("PN17") of the Main Market Listing Requirements.

After due consideration of all facts and circumstances of the matter, Bursa Malaysia Securities Berhad has decided to approve the Company's application for an upliftment from being classified as a PN17 company. SUMATEC will be uplifted from being classified as a PN17 company effective from 9.00 a.m., Tuesday, 2 September 2014.

Esok Sumatec pasti akan menjadi kaunter yang menarik untuk menonton. Untuk membeli, menjual, memegang, untuk menukar atau melanggan....keputusan ditangan anda..! Happy Trading...

............... Buzachi Neft financial statement (source: Bursa Malaysia)

Yup! Both are loss making company even Buzachi Neft is producing oil at this moment. The commentaries part even stated that the auditors has declared in emphasis of matter relating to the losses, shareholders' deficit, net current liabilities recorded and breach of covenants/terms of bank loans. All these factors may cast significant doubts about Buzachi's ability to continue as going concern but for the management of Sumatec, since the SPA is free from all indebtedness so it should be alright. But what about continuous losing even producing oil? Putting so much money into a company with records like this seems risky, don't you think? I guess they must see and know something that I don't.


Buzachi's estimated oilfields reserves (source: Bursa Malaysia)

Total proved and producing reserves is 4.33 million barrels of oil (MMbbl). Proved but undeveloped reserves is 10.92 MMbbl, probable reserves is 53.62MMbbl and possible reserves is 28.85 MMbbl. So total is 97.72 MMbbl. A lot right? But PROBABLE & POSSIBLE (I really like those words) reserves is 64.47 MMbbl or 66% of the total reserves. WOW!!! How probable & possible these reserves is? I don't know, I hope they know. As for the proved but undeveloped, can they provide an estimated figure as to how much it needs to spend to get it developed and start to produce?

Well, after all these facts, is it a good news or bad news for Sumatec shareholders? I guess if you believe in TSHS then it could be good news, if not then the acquisition is something you need to digest before decide to dump even more money into the company. I suppose TSHS would not want to jeopardize his own name and risk his fortune into something he is not comfortable with unless he has other agenda or plans. Does he?

Tomorrow Sumatec certainly will be an interesting counter to watch. To buy, to sell, to hold, to convert or to subscribes, is all too complicated!

Sumatec - Good news or bad news?

Author: Random Trading | Publish date: Thu, 28 Aug 22:57
Sumatec finally reported its latest quarter earning of RM 6.7 Million profit. It is the 3rd consecutive quarters of profit thus it might be enough for the company to apply for the uplifting of PN17 status. It is a good news for Sumatec but is actually much expected by everyone thus I think there is nothing surprise here. The more important announcement is instead the multiple proposal which include the right issues as well as the offer for sale and among other things. The full announcement is here :

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1725733

From the proposal, the most significant thing is the propose rights issue of every 1 right for every 2 shares with an attached warrant. The indicative issue price is 40 sen, derived from the 13.6% discount of theoretical ex-price of 46.3 sen. The proceed from the rights issue is for the propose acquisition of oil field in Kazakhstan. Basically the rights issue is not necessary a bad thing for 'long term' shareholders that believe in the prospect of the acquisition and willing to 'invest' even more money into the company and trust Tan Sri Halim Saad (TSHS). But for those that just looking to trades for short term profit, especially those with margin, this is certainly not a good news. This is even worse for those holding the existing warrants of the company since they are only entitle to the rights issue after they decide to convert their warrants. Warrant-A today closing price is 44 sen with a 32 sen exercise price which add to total 76 sen a share while Warrant-B closed at 44.5 sen with exercise price of 17.5 sen which add to total 62 sen a share. Of course the warrant holders can decide not to convert the warrants thus exclude themselves from the rights issue but this will hugely dilute their shareholding in the company. If they choose to convert and subscribes the rights issue then they will have to fork out substantial amount of money into this investment. One needs to seriously believes in the company or TSHS in order to do so.

The silver lining for the shareholders and the warrants holders is that TSHS seems going to invest even more money into this company. First, he is going to undertake the whole rights issue that he is entitle to. Currently he has 767,040,000 shares in the company thus he will undertake 383,520,000 rights with indicative price of 40 sen a shares which works out to be RM 153.4 Million. Then he will acquire the entire 727,272,727 shares that issues to one of the vendor for the proposed acquisition as a way of payment at 55 sen a share which amounts to RM 400 Million. Total money that he is going to pump into the company will be RM 535.4 Million. It is certainly a very big investment. He must really believes in this company.

The proposed acquisition is not exactly straight forward. The company that has the rights of the oil field is Buzachi Neft LLP, but the acquisition is not for this company instead is a company called Borneo Energy Oil & Gas Limited. Borneo is a company that only incorporated in Aug 2010 with only 2 directors with a share capital of USD 100. The company is an investment holding company that holds 100% legal & beneficial owner of the participating interest of the Buzachi Neft. Below is the financial status of the 2 company:

MULTIPLE PROPOSALS SUMATEC RESOURCES BERHAD (“SUMATEC” OR THE “COMPANY”) • PROPOSED ACQUISITION; • PROPOSED RIGHTS ISSUE WITH WARRANTS; • PROPOSED OFFER FOR SALE; • PROPOSED IASC; AND • PROPOSED AMENDMENTS (COLLECTIVELY, THE “PROPOSALS”)
SUMATEC RESOURCES BERHAD

Type Announcement
Subject MULTIPLE PROPOSALS
Description SUMATEC RESOURCES BERHAD (“SUMATEC” OR THE “COMPANY”)

• PROPOSED ACQUISITION;
• PROPOSED RIGHTS ISSUE WITH WARRANTS;
• PROPOSED OFFER FOR SALE;
• PROPOSED IASC; AND
• PROPOSED AMENDMENTS

(COLLECTIVELY, THE “PROPOSALS”)

(The exchange rate of USD1.00:RM3.20 is used throughout this announcement for illustration purpose)

Reference is made to the announcement dated 11 July 2014, in relation to the framework agreement entered into between the Company with Abu Talib bin Abdul Rahman and Dr Murat Safin (collectively, the “Vendors”) for the purpose of pursuing the proposed acquisition of 100% of the issued and paid-up share capital in Borneo Energy Oil and Gas Limited (“BORNEO”) from the Vendors.

On behalf of the Board of Directors of SUMATEC, M&A Securities Sdn Bhd is pleased to announce that the Company had on 28 August 2014 agreed to enter into a conditional share purchase agreement (“SPA”) with the Vendors for the proposed acquisition of 100% equity interest in BORNEO, comprising 100 ordinary shares of USD1.00 each in BORNEO (“Sale Shares”) for a purchase price of USD350,000,000 (equivalent to RM1,120,000,000) to be satisfied by a combination of cash and ordinary shares in SUMATEC (“SUMATEC Shares”) (“Proposed Acquisition”).

The purchase consideration of USD350.0 million comprises of:-

(a) USD250.0 million for the Buzachi Neft Oilfields (as defined herein) with a proved and probable oil reserves of 68.86 million barrels of oil at USD3.63 per barrel of oil; and

(b) USD100.0 million for the Ancillary Assets. Ancillary Assets comprises:-

(i) the non-current assets of Buzachi Neft (as defined herein) (which includes but is not limited to oil and gas wells, processing facilities, roads and artificial islands, buildings and constructions machinery and equipment and vehicles) with a net book value of USD75.9 million based on its unaudited financial statements for the financial year ended 31 December 2013; and

(ii) Limestone Production Quarry (as defined herein) which is worth at least USD25.0 million. Under the terms of the SPA, SUMATEC shall appoint an independent valuer to value the Limestone Production Quarry to confirm the value of the Limestone Production Quarry to be at least USD25.0 million.

In addition, under the terms of the SPA, SUMATEC shall acquire BORNEO and Buzachi Neft free from all indebtedness and encumbrances (including but not limited to borrowings, trade payables and tax liabilities).

In conjunction with the Proposed Acquisition, the Board of SUMATEC proposes to undertake the following:-

(a) Proposed renounceable rights issue of up to 2,298,582,440 new SUMATEC Shares (“Rights Shares”) together with up to 2,298,582,440 free detachable warrants (“Rights Warrants”) at an indicative issue price of RM0.40 per Rights Share on the basis of one (1) Rights Share for every two (2) SUMATEC Shares held together with one (1) Rights Warrants for every one (1) Rights Shares subscribed (“Proposed Rights Issue with Warrants”);

(b) Proposed offer for sale of up to 727,272,727 SUMATEC Shares to be issued to Abu Talib bin Abdul Rahman, pursuant to the Proposed Acquisition, to the substantial shareholder of SUMATEC, namely Tan Sri Halim bin Saad (“Proposed Offer for Sale”);

(c) Proposed increase in the authorised share capital of the Company from RM1,000,000,000 comprising 7,142,857,143 SUMATEC Shares to RM2,000,000,000 comprising 14,285,714,286 SUMATEC Shares (“Proposed IASC”); and

(d) Proposed amendments to the Memorandum and/or Articles of Association of the Company to facilitate the Proposed IASC (“Proposed Amendments”).

(Collectively, the “Proposals”)

Further details of the Proposals are set out in the attachment attached herein.

This announcement is dated 28 August 2014.

hahahaha...

don't ask me what news.....!u can belief me.....sure 2.50

seriously...tip 2.50

don't worry...Good news in coming .......tip 2.50

KUALA LUMPUR (July 11) Dato Ahmad Johari Abdul Razak, the the brother of Prime Minister Dato Seri Najib Abdul Razak, was made sumatec independent and non-executive director.

Yesterday, Tan sri Saad-controlled Oil ang Gas playar announced the appointment of johari, who has a direct interest of 1.92% in the company at june 30.

hold....tip 0.59

good news very soon..can buy now...