Good field this Bualuang with good production rates, still haven't peaked yet, why people got scared and dumping? sorry aahh, today is the first time I looked into this field.

"The Bualuang oil field is the Group’s flagship production asset and has been on-stream since 2008. When Salamander took over the development of the field it was thought to contain around 14 million barrels of 2P reserves and have a productive life of approximately five years. However, the field has undergone six reserve upgrades and it is now expected to ultimately recover around 60 million barrels of oil and be producing well into the next decade."

Full news: http://www.rigzone.com/news/article.asp?a_id=131631

Salamander ops updates (old news):
www.rigzone.com/news/article.asp?a_id=132955

Salamander news - background info (old news):
http://www.rigzone.com/news/article.asp?a_id=132864

focuz, you have to go to their website for further info. This field started production in 1977. The Soviets drilled a total of 47 wells - but never did any pressure maintenance to optimize production rates. Before Sumatec took over, they only have 5 wells producing with daily production rate of 150 bbls/day. +/- only 15 - 20% of the original oil in place (OOIP) has been extracted. Sumatec wants to get the remaining 10 - 20% of the OOIP with workoverand infill drilling - which is the standard procedures done on a mature field, worldwide. So, the expected increase in production rate from current 150 bbl/day to 2000 bbl/day by year end is reasonable with what they plan to do. Might be even more if they are lucky.

Need to clear something for you all, Sumatec took over the field and they announced their first production to their book after takeover date of 25 Jan. Current production of Sumatec is 150 bbl/day - this is the production with the old wells (total 47 wells with only 5 wells producing) under the previous operator. They just started workover around 2nd May 2014, and the work is ongoing. Since Jan until early May, Sumatec has been preparing for the workover ops with facilities upgrade etc. Once all is said and done, the workover wells (12 wells) and sidetrack drilling (3 wells) should bring the production level to 2000 bbl/day by end 2014....further development plan to bring to 4000-5000 bbl/day by end 2015, and up to 8000 bbl/dag by 2016.

copy this link and go to the site, somehow kalau click doesn't work: "http://sumatec.irplc.com/medianews.htm?filepath=SUMATEC/SUMATEC-Press Release 30-04-2014a.pdf"

You can see the rig photos. It's a Cardwell KB500 workover / drilling rig. It's a small rig, so daily cost is not that bad, probably between USD15K to USD25K per day. Even though it's small, the rig has good technical capability to drill sidetrack wells. So, things are moving...now waiting for news on the results of the first workover well.

investor3883 - you are spot on !!

now have RM6.8 mil cash in account...boleh la.See attachment "FIN-mar 14 d.pdf" in bursa link.

Repeating my old broken record with some updates.....Reminder to self: why do I invest in Sumatec?

1) Sumatec is now debt free.
2) After 2 consecutive quarters of profit, Sumatec can apply to be out of PN17 - whether get or not, up to Bursa, but usually apply saja, price can go up. Q4 2013 showed profit already.
3) Q1 2014 profit RM4.7mil (revenue RM13.7mil)....and the workover program still not finish yet. Very likely more profit for the following quarters after production from workover & sidetrack infill drilling. Good revenue from Rakushechnoye field...even though it's producing less than 1000 bbl/day right now as well as revenue from the gas sales.
4) Workover on the 12 idle wells already started to increase the production level, Once workover done, they will have 3 sidetracks (infill drilling) from existing idle wells to extract bypass oil. Target production end of 2014 = 2000 bbl/day. By Q1 2015, can have quarterly revenue of RM62mil.
5) Facts from ALL oil field worldwide. If you have 100% original oil in place (OOIP), you can only recover 15 - 20% of OOIP, due to diminishing bottom hole pressure, or water encroaching, or gas cusping, or scaling on the tubings, or block pore space near perforations area. The rest of the bypass oils can be extracted with infill drilling (new wells where the previous wells didn't cover) or workover ( acidizing, frack job, change tubing --- all to bring back production level up)
6) Rakushechnoye field started production in 1974 with 47 wells. Now only 5 wells producing - more to come after workover. This is a proven field, have oil (bypass etc), just need to do some work to increase production level.
7) Year 2015 will see some more work to increase the production level to between 4000 to 6000 bbl/day.
8) I have 17 years in the O&G industry, so why not use my knowledge and skills to evaluate Sumatec game plan...so far, I'm happy.
9) But, this is not a contra counter - you'll be dissappointed. Only for mid-long term investment if you want to grow with Sumatec.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1630581

OK la, workover program belum habis lagi sudah boleh dapat RM4.7mil profit....bila 12 wells workover done plus 3 sidetrack infill drilling done, we can expect more profit for the following quarters.....then can apply for uplift of PN17 status.

dragonslayer, bungaraya for long term is good. But now already a bit mahal compare to sumatec. If buy bungaraya masa murah, thats good la.

Chartmaster, Sumatec based on proven field & game plan. Sona - experienced reservoir management team from operators, they are evaluating potential fields diligently. UMWOG - drilling rigs demand will go up in the next few years. Hibiscus I like, but don't have enough info plus I don't like insider dump shares like crazy after problem with their first well, so will stay neutral with hibiscus.

Flybird - ye la, can sense what

Reminder to self: why do I invest in Sumatec?

1) Sumatec is now debt free.
2) After 2 consecutive quarters of profit, Sumatec can apply to be out of PN17 - whether get or not, up to Bursa, but usually apply saja, price can go up. Q4 2013 showed profit (unaudited) already.
3) Potential to have Q1 2014 profit? Very likely since they now can claim revenue from Rakushechnoye field...even though it's producing less than 1000 bbl/day as well as revenue from the gas sales.
4) Workover on the 12 idle wells already started to increase the production level, Once workover done, they will have 3 sidetracks (infill drilling) from existing idle wells to extract bypass oil. Target production end of 2014 = 2000 bbl/day. By Q1 2015, can have quarterly revenue of RM62mil.
5) Facts from ALL oil field worldwide. If you have 100% original oil in place (OOIP), you can only recover 15 - 20% of OOIP, due to diminishing bottom hole pressure, or water encroaching, or gas cusping, or scaling on the tubings, or block pore space near perforations area. The rest of the bypass oils can be extracted with infill drilling (new wells where the previous wells didn't cover) or workover ( acidizing, frack job, change tubing --- all to bring back production level up)
6) Rakushechnoye field started production in 1974 with 47 wells. Now only 5 wells producing. This is a proven field, have oil (bypass etc), just need to do some work to increase production level.
7) Year 2015 will see some more work to increase the production level to between 4000 to 6000 bbl/day.
8) I have 17 years in the O&G industry, so why not use my knowledge and skills to evaluate Sumatec game plan...so far, I'm happy.
9) But, this is not a contra counter - you'll be dissappointed. Only for mid-long term investment if you want to grow with Sumatec.

SANG-JERO, I lke ur dream la, haha

hearsay, 2nd Q should have profit also especially after the workover wells put in production, along with the gas sales agreement. From Chris Dalton's interview, after 2nd Q they will apply for lifting of PN17 status...now, whether get or not, itu up to Bursa la...but the fact yang diorang akan apply will push the price up...if long term investment, don't worry - need holding power.

have to copy and paste that link la, if click cannot get to it

hearsay, they already have production from this old field for Q1 revenue (this is the current field production when sumatec took over)...also, from profit contribution from its agreement on the gas development in Kazakhstan...there should be profit for Q1...if not mistaken they already announced something...somebody here can correct me on this. See the link below:

http://sumatec.irplc.com/medianews.htm?filepath=SUMATEC/SUMATEC-The Sun daily-27032014(c).pdf

flybird, good for you la, this counter memang ada future - and as we know, it's mid-long term punya strategy. When operations idle that day, malas mau masuk la, noting technical to talk about. Now, getting interesting - workover ops already started.

ogre : that's cool :-)

I tunggu Sumatec ops started, then I masuk la. Coz, before that all traders and chart people in here, I don't know mah. Korek minyak I know la. Target 2000 bbls/day by end of 2014. Starting 2015, will have 60000 bbls per month, at oil price USD107/barrel, that's USD 6.4mil revenue per month, or USD19.3mil revenue per quarter (RM62.6 mil revenue per quarter)...so heading to the right direction maahhh. Plus, there are plans to increase production capacity in 2005 to between 4000 - 6000 bbls/day....so, buy now when it's cheap la, hehehe

copy this link and go to the site, somehow kalau click doesn't work la. "http://sumatec.irplc.com/medianews.htm?filepath=SUMATEC/SUMATEC-Press Release 30-04-2014a.pdf"

You can see the rig photos. It's a Cardwell KB500 workover / drilling rig. It's a small rig, so daily cost is not that bad, probably between USD15K to USD25K per day. Even though it's small, the rig has good technical capability to drill sidetrack wells. So, things are moving...Halim Saad didn't take your money and run away like some people suspected :-))))

dragonslayer, sumatec ops quiet, so no need to bising2 la. Carik minyak for other people la. From Jan until now Sumatec no development, they've been upgrading facilities, road etc, rigging up...not much going on. Now, all is ready, workover operations has started, things will get exciting maahhh.

ogre, workover is not redrill. Workover means re-perforating, or acidizing, or fracturing, or change production tubing due to corrosion, or anything that relates to modifying current well profile to increase production. If they need to tap new production point from the reservoir without drilling a new well (which cost a lot of money), then operator will usually sidetrack from existing wellbore, or deepening the current existing well. Sumatec has 12 workover wells where they'll rework these wells - not sure what. Then they will sidetrack drill 3 wells to get to uncovered area.

Gong Xi Fa Chai...to all celebrating the Chinese New Year !!!!! May all your wishes come true.

stargazer1....answering on behalf of capt....not to worry, concession until 2025...all Sumatec needs to do to maximize production before end of that date is to drill more wells. FInd sweet spot, drill until dry, haha.

Correction, Sumatec did not hit oil, that field is already producing since 1977. Sumatec just took over the field, and they just announced their first production to their book after takeover date of 25 Jan. Current production of Sumatec is 150 bbl/day. Workover work and sidetrack drilling will bring the production level to 2000 bbl/day by end 2014....further development plan to bring to 4000-5000 bbl/day by end 2015, and up to 8000 bbl/dag by 2016. Price is still 30sen coz them old directors had to dump their holding in the open market as per agreement with new Sumatec's management. Sumatec's price will take some time to go up...but, after out of PN17, the sky is the limit :-)

NKN1; I don't have much info on block 50 Oman to make any comments la, all that I get is the media release, and usually the media try to spin things a bit to make the story sounds nice. To the question on how long to drill 2500m interval, we need to know the geology of the field. You cannot drill the whole 2500m in 1 go. From the first well, it's obvious that the field has different type of formation (sandstone, claystone, carbonate etc). There's different pressure gradient maybe, so they have to drill say 3 or 4 different hole sizes and then isolated these formation before continuing drilling ahead. In Thailand for example, you can drill to 2500m in 7 days....easy. But, in Block 50 Oman, from the first well, there are at least 2 carbonate sections where loss circulation can occur. Hibiscus drilling group needs to address the loss circulation zones properly. They need to employ different drilling technique (Managed Pressure Drilling with light or heavy annular mud) with specialize equipments to handle the loss circulation zones. I hope the drilling head is ready for this, which he should. If not, 2nd well also will have similar problem with losses in the carbonate zones.

I found some info on Block 52, which is close to block 50 - the link is below:

http://gcsproceedings.sepmonline.org/content/gcs032/1/SEC16.body.pdf

To drill to Shuram formation (in Nafun group - see page 4), you will have to drill to many different types of formations. If you look at the "legend" of the stratigrapy column on that page, you can see the symbol for carbonate. Before you can get to Shuram formation, where the reservoir is, you have to drill to at least 3 different carbonate intervals. So,I am really interested to see the results of the 2nd well....to see if the drilling group realize all the challenges or not, and how the solve it.

mmk79; that is a broad question. If green new field, you can get as much as the downhole pressure can push the oil. Sumatec's field is an old field. It's 354 square km field with only 47 wells drilled during Soviet time. Look at page #9 from link below, and you can see that the field already produced about 4.7 million barrel, which is only 10% of original oil in place....still have more reserve to extract. Unfortunately, the Soviet never did any pressure maintenance program on this field, all they did was just sucked up the oil for consumption. I don't have all the details of this field, but Sumatec's plan to do workover and sidetrack drill should deliver about 2000 bbl/day by year end. Further plan is to drill new wells in the future which will bring the production level to 4000 - 5000 bbl/day by end 2015, and up to 8000 bbl/day by 2016. Future prospect is great for Sumatec, and right now the price is cheap for the future Malayusian independent oil & gas company....but, my take is this is a mid-long term investment.
Enhanced Oil Recovery (EOR), Workover & infill drilling all the same for onshore or offshore ops.

http://sumatec.irplc.com/investor-relations/doc/Sumatec-Presentation-to-Fund-Analysts-10th-July-2013.pdf

funny laaa, every time a newspaper publish something about O&G activities, mesti ada yang salah punya, haha. I read also buat sakit hati saje....

p/s by the way, if you've watched the movie Armageddon staring Bruce Willis before, please erase every single scenes of that movie from your mind...semua cerita dongeng tu, haha.

mk88....which oil field? Hibiscus in Oman? I said, unless there are able to solve the losses while drilling the carbonate layer, then they'll have problem reaching target depth to evaluate the reservoir...their field is exploration project, so, need to be able to do well testing first to know how much oil they have. As for SUmatec, it's a proven old field with production history, so have oil, just need to do workover and extract bypass oil.

dragonslayer, here just normal green tea saje maaa, teh tarik kena tunggu kedai mamak kat PJ, baru ada umphhhh

stargazer1, hibiscus different story, offshore ops, starting from scratch at surface. Also, I don't know the details of Hibiscus well plan, how many casing points etc, we have to trust their planning days to drill to 2500m...should be close between actual and plan barring no problem. Sumatec from now until June will only do workover....no drilling. Only after June, they will start sidetrack drilling from old existing wells. So, they will cut window in the existing casing (I don't at what depth) and then sidetrack....probably 2-3 weeks to finish to get to target from start operation.

dragonslayer, baru 9:10am sini...ini hari operation ada slow sikit...rig ada problem, so curi curi masuk Sumatrain punya forum la, haha

Noraini is right on regarding stock prices....it's sentiment based first...the good news just to support investors/speculators decision, haha

sklyte...hibiscus I haven't been following for some time, they got some concession...that's good news, but they need to to successfully drill their well and realize the reserve & production rate first, then price will go up.

sklyte, I'm always in Sumatec, that day masuk forum nak bagi enlightenment to hibiscus punya kaki on the o&g thing aje....just to be helpful ma.

strategist, hopefully...one thing for sure, from now on, good news will keep coming in term of increase in production.

dragonslayer, banyak sangat share floating laa, the price movement will be up and down, up and down until year end, sikit sikit, 1 - 2 sen....keluar PN17 will jump a bit more...but then, it'll be nice to target 1.00 by year end, but if the actual price is RM 1.50, you'll be happy to the max, haha, again..from my not so clear crystal ball.

asahmad, I'm an investor, not a trader....so, I'm keeping Sumatec for 2-3 years in line with the new management's growth plan, with a target of RM3.50 when they increase their production to +/- 3 million barrel per year. See below link.

http://sumatec.irplc.com/investor-relations/doc/Sumatec-Presentation-to-Fund-Analysts-10th-July-2013.pdf

Honestly, nobody can predict price movement, but if I have to guess, by the end of the year where they'll be out of PN17 already and have 2000 bbl/day production, the price could reach between 0.90 to 1.00, from my not so clear crystal ball, haha

http://www.thestar.com.my/Business/Business-News/2014/01/27/Sumatec-sees-first-oil-production-at-150bpd.aspx/

To clarify, Sumatec management finally took over the field 25th Jan. The 150 bbl/day is the current production rate...without any work done. That's it. The 150 bbl/day is the rate when CaspiOilGas was still handling the field. Once the rig is all ready, up and running, they will do the first workover work, and then the oil production rate will surely increase....so, from now on, the only news you'll hear is production rate going up and up, from current 150 bbl/day to target 2000 bbl/day by year end.

So, siapa yang masih look-look and see, now is the time to buy....before it's too late, haha

Flybird, see page 13 of the link below:

http://sumatec.irplc.com/investor-relations/doc/Sumatec-Presentation-to-Fund-Analysts-10th-July-2013.pdf

For onshore ops, between USD6 - USD10 per barrel.

See the oil price fluctuation from the link below. Just adjust for 2 years prices and you can see the range is from USD104 high to USD84 low....average sake, maybe USD96 is OK la.

http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=2y

Also, this is not inclusive of the gas sales agreement....

http://sumatec.irplc.com/medianews.htm?filepath=SUMATEC/SUMATEC-TheEdge-31122013.pdf

http://abcnews.go.com/International/wireStory/oil-prices-stall-lackluster-china-data-21634315

The target is to have "average" production 2000 bbl/day by end of 2014. So, safe to say, by Jan 2015:

2000 barrel per day
or, 60,000 barrel per month

At +/- USD97/barrel, by end of the year, monthly revenue from the production is 60,000 bbl x USD97 = USD5,820,000

Which is RM 18,915,000 revenue per month (x-rate RM3.25 = 1 USD)
Or Quarter revenue of RM 56.7 mil.

But, production could be more than 2000 barrel/day, depending on the workover and sidetrack drilling results....this is just production target based average workover/sidetrack performance.

Dreamhunter, Almaty is 2 hours behind Msian time. No oilfield in Almaty - big city only.

Dreamhunter, haha,location must be confidential a bit...but, people can cuba teka la, haha.

Noraini, hahah, cool !!!

dragonslayer, I'm 3 hours behind Malaysian time now....baru habis kerja maa...relax a bit before dinner.

anything goes...tong teh tarik, banana leaf all jalan mah, haha

dragonslayer...kerja punya pasal sometime dont have time to masuk forum maaa...thats why today friday evening ada sikit time la to drop by.