KUALA LUMPUR: Sumatec Resources Bhd
posted net losses of RM2.74mil in the financial year ended Dec 31, 208 and net losses of RM826,000 in the final quarter.
The company announced on Thursday its revenue was RM2.98mil in FY18 while there was no revenue in the fourth quarter.
According to Sumatec, for FY17, its net losses were RM63.66mil and Q4FY17 net losses at RM65.54mil.
Sumatec manages and operates oil production operations at the Rakushechnoye oil and gas field in Kazakhstan.
On April 30, 2018, it triggered the prescribed criteria under Practice Note 17 (PN17) of the Main Market Listing Requirements of Bursa Malaysia Securities Bhd.
The company’s auditors have expressed a disclaimer opinion in its latest audited financial statements for the financial year ended Dec 31, 2017.
Sumatec has to submit a proposed regularisation plan within 12 months.
“The board wishes to inform that the company is still formulating a regularisation plan and there is no major development to-date. The company has approximately two months to submit its regularisation plan to the relevant authorities for approval,” it said.
Sumatec said the Rakushechnoye concession is an onshore oil and gas field, which requires modest capital expenditures.
It explained Rakushechnoye’s projected capital expenditure per well being just a fraction compared to offshore production, the production cost per barrel for its operation will be low.
“The company is now exploring several funding options to increase production at Rakushechnoye. The company expects to materialise this effort and move ahead with the proposed field development plan to increase production by the end of the year.
“Notwithstanding the prospect and amidst global downside risk to oil market ahead, the company has to deal with the legacy debts issue,” it said.