SUMATEC Sumatec Resources Berhad 10 July 2013 Presentation … · 2013. 7. 18. · SUMATEC THE...

THE Leading Malaysian Independent Oil & Gas CompanySUMATEC

SUMATEC

THE Leading Malaysian Independent Oil & Gas

Company

Sumatec Resources Berhad10th July 2013

Presentation to Fund AnalystsBy Chris Dalton

Chief Executive Officer


Key Messages

• Deliver Long Term Profitable Growth

• Proven Mature Asset Portfolio

• Creating Value for Share Holders


Production Sharing Contracts (PSC)Joint Investment Agreements (JIA)

Serv

ice

Service Companies

Exploration Companies

E&P

Equity / Concession

Risk Service Contracts

SUMATEC

Operator: E&P’s

Dialog

Scomi

UMW

Uzma SapuraKencana

Hibiscus

Wah Seong

Why Sumatec is Different!


Why Kazakhstan

Developed economy and legal systemStable political environmentWell established Oil & Gas legislationEstablished export routes for sale of hydrocarbonsConcession contracts as opposed to PSC & RSC

Geopolitical Advantages

30billion bbls of proven reserves (ranked 11th in the world, largest in central asia)1.6mmbbl/day production, double by 2020Low risk onshore mature assetsHigh potential of increasing reserves in our asset

Geological Advantages

Largest land locked country & 9th largest globally

GDP Per Capita 13,892USD (2012 estimate)


Why Mature Assets

<1 yr 1 yr 2 – 3 years

• Licensing Round• Contract

Negotiation• Work Program• Fiscal Regime

3 - 5years

• Geological Study• Seismic Survey• Exploration Wells• Reservoir

Mapping

• Construction of surface facilities

• Drilling of production wells

• Delineation wells• Confirm Reserves• Development

Concepts

• Upgrade surface facilities• Expanded drilling

program

15 – 20 years

Bidding/Acquisition

Exploration Appraisal Early Production Commercial Scale Production

$5-10m $30-40m $15-20m $30-40m More than $50m

20

40

60

80

100

120

140 • High risk mainly on exploration• Low certainty of oil/gas content• If there is no oil and gas find,

the exploration costs will be totally lost

• No more exploration risk• Oil reserves confirmed and

certified

Current status of Rakushechnoye

Risk Profile

Cumulative Cost Profile

USD

mill

ion

• 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


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


Entry Price for Sumatec Compared to Peers


Rakushechnoye Field is a Mature Asset• Concession area: 354km2 with subsurface user rights till 2025

• 1st Well Drilled in 1974

•47 Wells Drilled

•3D Seismic acquired 2008


10 Reservoir Zones: 8 gas / gas condensate,

2 oil saturated.

4.7 mmbbl of oil and 51BSCF of Gas

has been produced which is less

than 10% of the original oil and gas

in place

Rakushechnoye Field Reserves(mmboe) Oil Gas Total Oil and Gas

Proved 5.2 17.2 22.4

Proved + Probable

32.8 89.3 122.1

Proved + Probable + Possible

74.7 257.0 331.7

6000SCF = 1BOE.Reserves Certified by SRK Consulting (Australia) Pty Ltd February 2013

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


Proved Reserves is Low Risk, High Potential of Additional Reserves

• 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

• Normally pressured at reservoir

• Compartmentalized in the north , a lot of by passed oil

• Two main reservoir drainage areas – north – commercial

, South untested


Stimulation & Workovers1000-2000bbl/day

Sidetracks4000-6000bbl/day

New Wells>8000bb/day

Oil Production Oil & Condensate Production with Gas Injection Oil & Gas Production

Phase 1:2013

Phase 2:2014-2015

Phase 3:2016>

Rakushechnoye Development Schedule

New Storage Facility New Processing & Injection Facilities Pipeline for Oil & Gas Export


Stimulation & Workovers1000-2000bbl/day

Sidetracks4000-6000bbl/day

New Wells>8000bb/day

Well Count & CAPEX

Work Program 2013 2014 2015 2016 2017 TotalWorkovers & Stimulation Jobs 6 12 2 2 2 24Sidetracks from existing wells 0 4 4 0 0 8

New Wells 0 0 2 2 2 6Well Remedial work 0 0 5 5 5 15

Total 6 16 13 9 9 53

Phase 1:2013

Phase 2:2014-2015

Phase 3:2016>

SummaryYear 2013 2014 2015 2016 2017

Total Capex 3,806$ 29,318$ 43,215$ 18,550$ 19,470$ 114,359$

$ in 1000's Total 5 Year Budget

Workover & Stimulation: 200-400K USDSidetracks: 1M-2M USDNew Wells: 5-6M USDField Upgrades: 25M USD: Processing facilities, StoragesPlanning : 2M USD


Risk Assessment


5 Year Business Targets

8000bbls/day (2.9M bbl/year)

Large Independent Oil & Gas Company >200 million bblsProved Reserves

RakushechnoyeOperations

2 Million Bbls From Rakushechnoye

Revenue RMNew Acquisitions

Rakushechnoye


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

New Management and StrategySUMATECOil & GAS


Redesigned www.sumatec.com Launched June 13


New Investor Relations Section


New Management

Chris DaltonChief Executive Officer

Zulkifly MohamadChief Operations Officer

Based in Almaty

Roshidah AbdullahChief Financial Officer

Joined Sumatec June 201217 Year Industry Experience

with HalliburtonTo Be Appointed in August 2013

30+ Years Industry Experience with Schlumberger including 10 Years as Country

Manager in Kazakhstan

Joined Sumatec April 201324 Years Experience in Financial

Management & Operations

Executive Team

Technical Leaders

Chingis NabiyevTechnical DirectorBased in Almaty

To Be Appointed in August 2013

13 Years Industry Experience with Schlumberger

Samuel Elliot HarveyOperations Director

Based in AktauTo Be Appointed in August

201315 Years Industry Experience with Schlumberger

Bakhtiyar JexenbiyevQHSE DirectorBased in Aktau

To Be Appointed in August 2013

12 Years Industry Experience with Multi-National

Corporations


Management KPIs

Staff & Talent

Daily Production

Increase

Total Reserves

Cost per bbl

Company Values

Shareholder Value


SUMATECOil & GAS

THE leading Malaysian Independent Oil & Gas Company

Deliver Long Term Profitable Growth• Large Independent • Sustainable growth from initial proven reserves

• Rakuschechnoye Low Risk / High Potential• Acquire own Assets with 24 months

• Free Cash Flow from Oil Sales• Attractive Profit Margin & Dividend

Proven Mature Asset Portfolio

Creating Value for Share holders

SUMATEC Sumatec Resources Berhad 10 July 2013 Presentation … · 2013. 7. 18. · SUMATEC THE...

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