Chrollo, drilling in proven oil field has minimal risk...they know have oil, just have to find area that is not tap by the old wells....imagine such a big area only 47 wells covered...there are areas where the oil is not tap (or bypass)...so, drilling in June will increase overall production level.

Agreed with Noraini la...these are all good news, but if old investors keep dumping,price naik will be sow la, up and down. BUT, FOR SURE, for mid-long term, this is the real deal....keep holding until out of PN17, then keep holding somemore...then you can belanja me teh tarik :-)

dragonslayer, sight seeing also OK mah...can inspect all the pipeline there what

That's why Halim Saad is so confident that they will get out of PN17 by Q3.....once the agreement takes affect, they will assume the revenue from existing production...kaching money masuk,then they do workover to increase production on 10 wells, kaching money masuk, in June sidetrack drill to tap bypass oil,kaching money masuk.....so, train will move....but, itu old shareholders mesti dump punya, so, pricing wise, TA kena tanya experts TA la, haha

Quoting from SUmatec's Media Release:

"In 2014 Sumatec plans to re-enter ten operational wells and increase the production from the Jurassic Oil Reservoir which is at a depth of 2300 meters below groundlevel. The workover campaign is expected to be completed in June 2014. The rig will then be moved to re-open three non-operational wells from which we will side track and drill a new hole from just above the reservoir. The purpose of the side tracks is to produce oil from acreage that has not been produced from before. At the end of 2014, Sumatec plans to have 13 to14 wells on production to achieve the target of 2000bbls average per day."

See up there, "re-enter 10 operational wells". These wells are producing...they will re-enter, and do workover to increase production level. Black oilalready flowing,already masuk Sumatec punya book. Workover will increase say 15-20% more production.

In June, more black oil will flow after drilling sidetrack well.

But, Sumatrain people must know, once rig arrives, there will be NO DRILLING. Just workover. So, don't wait for drilling news la, haha.Workover is also OK, make money what.

dragonslayer...remember Halim Saad guaranteed revenue RM86 mil if notmistaken,..these is from current production + expected level of increase after workover / sidetrack drilling....minyak memang ada and tengah produce...you all kena beli tiket Air Astana, fly to Almaty, then take another flight to AKtau, and visit this field, hahaha

vroompower99...typical media / bursa - which doesnt understand technical in oil field. It should say, increase production level rather than commencement

Noraini...this field is already producing....thats why after takeover, Halim Saad guaranteed revenue, what RM86 mil is it? Once arrives, rig up for mid-size rig maybe 1 week la. From now until June, they will do workover....to increase production....only in June they will drill to tap in new area. So, both work is OK,workover makes money, drilling also makes money.

ai yo,so many questions, haha

Rajinikanth,
1) Now already have production...these are the old wells. Once the rig arrives, the will work on these old wells. Example well A, producing X barrel/day. They will kill well A - stop production first. Then, the rig will do whatever SUmatec plan is, either to re-perforate the pay zone, or acidizing the existing perforation, or maybe change the production tubing....once done, they will put back well A on prodcution - with better production rate X + 15% barrel/day.

2) June drilling is to tap bypass oil from area not covered by old existing wells. The 10 wells that they'll work from now until June will continue flowing with +/- 15% = 20% additonal production. The wells they will sidetrack in June will further increse production.

3) It's the same reservoir, so they already know what kind of quality the oil is...so, there are existing buyer, existing facilities to handle the crude etc. Just additional revenue for them after the workover and sidetrack drilling.

dragonslayer....even now, this field is already producing...Sumatec already put the revenue in the book once their agreement takes place....with the workover, tambah lagi revenue la, the media relese say expected to increase production level to 2000 barrel/day. So, money come in, that means by end Q2, boleh keluar PN17 la....

Sumatrain people need to know that once the rig arrives, there will be NO DRILLING. Until June, just workover to increase production level.

If workover of current existing wells, this means sure money in the bank la with extra additional production. The wells already producing, I don't know say X bbl/day, after workover (maybe re-perforating, maybe acidizing), these jobs will surely increase +/- 15% of production level (on most cases - some remote cases, minor increase in production). So, money in the bank la !

Chrollo...yes, from now until June, just workover...increase production of current existing wells....still extra revenue for them, still extracting from current wells, nothing changes there...only with better production level. In June, they will start to sidetrack drill to get to the bypass oil not covered by the old existing wells. They will sidetrack from 3 non-operational wells...this will save cost, rather than start from scratch.

http://sumatec.irplc.com/medianews.htm?filepath=SUMATEC/Press%20release%20SUMATEC-Mobilisation%20Of%20The%20Workover%20%20Drilling%20Rig%20In%20Progress-31122013.pdf

Looking at the photos, it looks like a well maintained rig - nicely painted to avoid corrosion. As per Sumatec, it's a workover & drilling rig - probably a mid-size rig with top drive.

As per the media release, in 2014 the workover jobs will re-enter 10 active wells. Nothing mentioned about drilling. So, what they'll do is either re-perforating, or acidizing to remove scaling / blockage. So, please note that the first 10 wells will not have any drilling operations - but, workover. The objectives of the workover is to INCREASE production of existing performing wells. So, probably, after the workover jobs, can increase say 15 - 20% production level.

Expected completion date for workover is June. Only then, the rig will move for side-tracking (drilling) operations from 3 non-operational wells to tap the bypass oil in area not covered by old wells.

stargazer1, check out the corporate presentation:

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

In 2013, they already have the 1000-2000 bbl/day, this is good already for revenue at current oil price. After sidetrack/workover in 2014-2015, the production forecast is 4000-6000 bbl/day - more revenue. And yes, they have plans to acquire more proven oil field in the future, which means more reserve for them.

dragonslayer / Looiks, hahaha

I've said this over & over again, Sumatec counter is not for contra kaki....it's for mid - long term, depending on your TA. Kalau tak tahan tunggu, wait at least sampai keluar PN17....then can take profit. Kalau holding power manyak kuat, then tunggu lagi....Sumatec punya new vision is: "We want to be the leading Malaysian based Independent Oil & Gas Operator focused on developing proven oil & gas assets." The key word here is PROVEN OIL & GAS ASSETS. Sumatec is not like Hibiscus going for exploration project. PROVEN means there's oil & gas, just need to do some work to extract the oil out. In case of Rakushechnoye field, it is an old field with the possibility to get aditional 15 - 20% of the remaining original-oil-in-place. The field has a proven production history with only 47 wells. There are area where the old wells didn't cover, and Sumatec will do infill drilling by sidetracking from existing old wells - to get all these bypass oil. In addition, there'll be workover work on some of the idle wells to increase production. This might sound like a broken record....but Sumatec is for mid-long term investment only...give some time for Sumatec to develop the Rakushechnoye field. All these prices fluctuation is just a "cobaaaaaaaaannnnnn" as the late P.Ramlee would say it, haha.

prc4wifefe & speakup - agreed !

dragonslayer - ini carik makan laaa....kalau Halim Saad hire me, I go korek minyak for SUMATRAIN la, haha

stargazer1 - any particular area you are referring to? If Kazakhstan, only Almaty (and eastern area) have earthquakes....in Western Kazakhstan (where Sumatec field is) , which is a steppe area and doesn't have any tectonic plate movement for earthquakes. I've involved in gas drilling in Japan - so far, the well construction strategy didn't change much. Surface production facilities probably have extra safety valves that can be operated remotely.

dragonslayer - manyak sibuk pergi korek minyak for Chevron maaa, haha. Baru ada free time sikit.

Sumatec field is a proven field. It's an old field. It was first drilled in 1974, total 47 wells, with currently 5 wells producing. This field has production history already. The production history has reached its peak and is currently in decline mode. But, worldwide fields usually has a recovery factor of about 22% of the original oil in in place...with only 47 wells covering the area, there are area where the wells did not cover, so there's bypass oil to be extracted. Sumatec wants to drill infill wells from existing old wells to extract the bypass oil. Also, they plan to do workover on older wells to increase production by acidizing, or re-perforating...

This field is owned by a Kazakh company, CaspiOilGas LLP (COG). They just don't have the money to re-start the field i.e start infill drilling & workover. Sumatec just come in with money and some agreement on how to split the revenue etc, you can read in their announcement on this. Probably some other Kazakh companies also approached CaspiOilGas, but they couldn't agreed on the terms & conditions. It seems Halim Saad managed to convince CaspiOilGas to go with him. COG also wants to maximize their profit, so whoever comes up with the best T&C will be their preferance. It's a win-win situation for both I guess, the Kazakh gets rich and Halim Saad can continue with his rich&famous lifestyle.

Good potential:
1) it's a proven field with production history - we know how much they have produced and we know how much oil left in the ground. There's no way to get 100% oil out, but Sumatec has the chance to get additional 10 - 20% of the remaining oil in place.
2) Existing production facilities - don't have to spend additional cash to send money to buyer.
3) Onshore operations - cost is cheaper than offshore. Somemore, in onshore operation, you can produce right away after drill a well. Not like Hibiscus offshore, where you have to build pipeline or facilities etc just to produce and sell oil.
4) Sumatec plans to add additional PROVEN field in the future.
5) CEO and some management are ex-Schlumberger, so they know some about workover operations i.e acidizing, tubing changeout etc.
6) Operations are starting in the field, a rig will start operations end-January - early Feb....things are moving.

I am investing in Sumatec...shouldn't a doctor be investing in a pharma company if he knows the company is making a good drug? I think I'm justifying myself that as an oil field thrash, I see a good and bright future in Sumatec....haha

Reminder to self: why do I invest in Sumatec?
1) Sumatec is now debt free.
2) After 2 consecutive quarters of profit, Sumatec will be out of PN17.
3) Potential to have 2Q profit? Very likely since they now can claim revenue from Rakushechnoye field...even though it's producing less than 1000 bbl/day.
4) Work will start looks like end Jan - early Feb 2014 to increase the production level either by workover on the idle wells or sidetrack (infill drilling) from existing idle wells to extract bypass oil.
5) Facts from ALL oil field worldwide. If you have 100% original oil in place, 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.
7) Once the workover work started and infill wells (from sidetrack) started, Sumatec will get additional production from this field, i.e more revenue.
8) This is a proven field, have oil, just need to do some work.
9) Hibiscus is doing exploration work in Oman - this is a different beast all together. With exploration, you might hit oil, you might not. Sumatec field is a proven field.
10) 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.

hai ya, you guys, here's a re-post:

This link below is for those doubters saying that Sumatec punya field don't have minyak. To summarize, average Recovery Factor (RF) worldwide fields is about 22%. That means still have 78% of original-oil-in-place down there. But, can we recover the rest of the 78% of original-oil-in-place? No. With current technology (infill drilling, EOR - enhanced oil recovery), we can probably get additional 20 - 30% depending on what have been done in the first phase of production (solution drive). Sumatec's field Rakushechnoye is an old Soviet field...I doubt that the Soviet did any pressure maintenance during the production life...so, Sumatec's strategy is to extract bypass oil by sidetrack drill infill wells from existing wellbore to area not covered by current existing wells and to do workover on old wells in order to increase production. Best guestimate how much more they can recover probably additional +/- 15-20% of original oil in place. That will be revenue to Sumatec's pocket....Sumatec also plans to add additional fields in the future, so investors should hang on to Sumatec for the long term.

http://www.ogj.com/articles/print/volume-105/issue-41/exploration-development/global-oil-reserves-1-recovery-factors-leave-vast-target-for-eor-technologies.html

dragonslayer, production from the wells is continuous throughout the year, unless if there's any well problem such as scaling build-up or corrosion. Refinery usually have some shut down time every year due to maintenance....but not that long...depending on size of the refinery, between 2 - 4 weeks.

dragonslayer / flybird, rig move during winter is a pain in the ass lorrr.....slippery condition...less daylight....somemore when suddenly got cold front, diesel to fuel lifting crane & trucks pun boleh f*** up kalau tak cukup additives...and when you have -20C windchill, the workers pun work very slow, take hot tea break very frequently....hahahah....

vroompower99.....drilling rigs now are hot items, drilling activities worldwide is increasing....not sure why Sumatec picked the Croatian rig, but usually to save cost operator will pick suitable rig for their intended operations, with low day rate and low mob/demob cost. They must have done their due diligence...mob through those countries should be no problem as Kazakhstan is a landlock country....most of the products imported are via road or rail from either Europe/Russia or China. Usually, the rig owner will ensure that the rig reach destination safely so that they can earn their rental...operators wont buy rig, it's too costly to maintain, much cheaper to rent.

As for the mafia, since the owner of the field is CaspiOilGas...so, if there's any undertable money involved, I guess these are the guys who will handle it on Sumatec behalf...especially since Sumatec/Markmore & CaspiOilGas already signed a JV.....

my 2 cents lor.

Noraini...it's winter in Kazakhstan now, so rig mob will be more than 6 - 8 days. Also depending on how far they have to mob the drilling rig. A typical 20km rig move in winter condition will take about 12 - 14 days - lots of heavy loads and the daylight is less, operations is 24 hours but usually at night they dont work with heavy loads.

somebody asked me about why Sumatec is using a Croatian rig....Croatia has lots of old land rigs and cheap as well....the key point is cheap. The type of work they are doing which is workover and sidetrack do not require super duper rig....asal jalan OK lor, will meet job objectives while reducing cost.

sklyte, I like this counter, any o&g counter is my fav...interesting to see what Hibiscus will do next with the 2nd exploration well. Yes, loss circulation problem can be solved with the right equipments and technique.

DickyMe, yes thank you, but it's kinda broken record don't you think that everytime I see your post in here it's the same story being repeated, and I have to get my broken record as well trying to explain things from my point of view, again. Don't you feel tired that you keep repeating the same thing, but still the investors here don't want to listen to you. You will have my highest respect if when I see your next post, you post something new and refreshing, that an oil field thrash like me will say, "wow...listen to that..."

DickyMe, this Sumatec is for long term investment, I'm not worried about resistance ke apa ka...I'm looking at the company's vision and plan. Their strategy makes sense to me since this is my industry, I've done some background check regarding the field in Kazakhstan and it all check out. If you understand long term investment then you'll understand all these short term noises wont bother me...I'm looking at a long period forecast.

Bila 2nd exploration well start drilling? Hope they will ready to counter any potential carbonate losses zones. If strike oil as expected, Hibiscus punya investor jadi kaya raya la!

DickyMe, fine, whatever, type and laugh as much as you want to, I have my point of view, you have yours.

for the "negative thinking" forumers who've been writing bad comments about Sumatec here, the reason why some investors are rooting for Sumatec is for potential FUTURE revenue forecasted based on solid planned future activities. Why do stock prices move up besides being played by sharks....all those good news, good revenue coming in with confirmed future revenue. True that Sumatec has nothing right now, but based on what they plan to do and what they've done, the investors here wants to grab some piece of the pie before the price goes up higher (once all the good news are out and confirmed). So, you have hantam Sumatec kuat kuat with all your CURRENT facts and figures. Fine, that's your point of view. If you ask any Sumatec investors, they will tell you that's old news for them and the reason they are in is because of future potential. No need to come here everyday giving the same facts in hoping that the investors will change their mind and start dumping their holdings...probably you are waiting for that because you want to get the cheaper price...hey, I guess that's your strategy...but to make this forum a place to curse and insult people because their point of view is different than yours, is not an "A "class act.

As for me....
Reminder to self: why do I invest in Sumatec?
1) Sumatec is now debt free.
2) After 2 consecutive quarters of profit, Sumatec will be out of PN17.
3) Potential to have 2Q profit? Very likely since they now can claim revenue from Rakushechnoye field...even though it's producing less than 1000 bbl/day.
4) Work will start mid Jan 2014 to increase the production level either by workover on the idle wells or sidetrack (infill drilling) from existing idle wells to extract bypass oil.
5) Facts from ALL oil field worldwide. If you have 100% original oil in place, 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.
7) Once the workover work started and infill wells (from sidetrack) started, Sumatec will get additional production from this field, i.e more revenue.
8) This is a proven field, have oil, just need to do some work.
9) Hibiscus is doing exploration work in Oman - this is a different beast all together. With exploration, you might hit oil, you might not. Sumatec field is a proven field.
10) 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.

HangMiskin - just remember Sumatec is for mid-long term investment. Macam masuk duit in ASW2020 or ASB la, deposit and wait in the train...listen to capt Looiks announcement, haha.

bastioonne, for sure, in losses situation, typically you encountered the problem then spent a few days fighting the losses before successfully suspending the well. If suspended the well on 19/Dec, then probably they started having the losses problem maybe 4 days before they suspended the well.

ok, sudah tutup tingkap, bunyi sudah kurang sikit...tapi, ada ngeng-ngeng-ngeng lagi la...tapi, last resort ear plugs banyak.

still have this noise, let me close the office window la this time.

strategist, sebelum humban, siap sula dengan drill bit lagi dulu, hahaha

did somebody fart? it stinks but no sound at all....hai ya

gark, true that he is a young guy as a head of drilling, usually you need years of working experience at many different locations to be able to understand different drilling environments, different drilling technologies etc. But, maybe this guy is smart...hope he is smart enough to understand that after the first well, they need to do something different on the 2nd well.

so many lalat2 la today....make noise here and there..

what's that noise ha? oooo, nyamuk only...

i think i heard something...oh, it's something insignificant...

no need to layan la, sundar = dickyme = anbz.
Biar dia syiok sorang2 play with his numb nipples. I just saw the other day orang gila cakap sorang2 dekat bus stop. So, fellow Sumatec investors, just ignore ini orang, sudah la ignorant, bodoh sombong pulak, asking questions like he is a super duper management person scrutinizing every details...if he doesn't even have the slightest idea how to find the info and keep asking stupid questions with stupid remarks, why we want to lower ourselves down to his level, we have our own objectives and strategy....let him be la...if yanyana comes here again, we can ask that apek to play with sundar = dickyme = anbz's nipple until numb. Kapish?

anbz, no delay in project, as planned as per their strategy in website, work will start mid-Jan 2014. The rig has been mobilise...this is not korek lubang with cangkul. A rig package is a lot....not just a cangkul, have other critical equipments also...and they are massive, cannot angkut with basikal...why la am I degrading myself talking to someone with zero knowledge in o&g but still talks like he's knows everything. anbz, you layan youself la after this, or you can look for yanyana, that apek like to play with his niple until numb - you can join him lor.

but, sumatec is not for contra kaki, it's a mid-long term investment...must have holding power. Read Sumatec forum for all my posts on Sumatec. Sorry Hibiscus guys, not trying to promote Sumatec here, but honeydream asked a question.

honeydream, haha, sumatec la. It's working on a proven field. The rest big ones all expensive already...other cheaper SPACs, I don't know what their project is yet - they are still evaluating. Hibiscus, high risk doing exploration.