KUALA LUMPUR, July 11 Malaysian upstream oil and
gas company Sumatec Resources Bhd has agreed to buy
Borneo Energy Oil And Gas in a cash and share deal worth $250
million, Sumatec said on Friday.
Sumatec signed a framework agreement with Borneo Energy's
owners Abu Talib Abdul Rahman and Murat Safin for the purchase.
Borneo Energy owns Kazahk upstream oil and gas firm Buzachi Neft
LLP, according to a local stock exchange filing.
Shares in Sumatec closed up 21 percent at 37.5 sen on
Buzachi has two 25-year contracts, valid until November
2026, to explore for and produce oil and gas in Karaturun
Vostochnyi and Karaturun Morskoi fields, the filing showed.
"Since the fields are already in production, the proposed
acquisition is expected to immediately contribute to the revenue
of the company," Sumatec said in the filing.
The fields comprise 26 wells, of which five are in
production. The additional reserves in the fields will provide
stable recurring income to the company, said Sumatec.
The fields have been producing between 400 and 600 barrels
of oil per day, it added.
Sumatec counts Ahmad Johari Razak, younger brother to
Malaysian Prime Minister Najib Razak, as an independent
(Reporting By Yantoultra Ngui; editing by Tom Pfeiffer)