KUALA LUMPUR: Shares in SUMATEC RESOURCES BHD faced a heavy sell-off in early session Tuesday after the company received termination notice for the Rakushechnoye oil field deal.
The PN17 counter plunged 33.33%, or 0.5 sen to one sen. It is currently the second most actively traded counter with 12.33 million shares traded.
Sumatec Oil And Gas LLP (SOG), a wholly owned subsidiary of Sumatec has received a notice from CaspiOilGas LLP (COG) terminating its joint investment agreement and novation agreement effective Oct 17.
In the termination notice, COG cited the constraints faced under Sumatec’s current financial and legal predicaments which impacted SOG’s ability to comply with its obligations to carry out appropriate investment/work programmes and to provide necessary funding for the petroleum operation under the joint investment agreement.
To recap, on March 8, 2012, Sumatec entered into a joint investment agreement with Markmore Energy (Labuan) Ltd and CaspiOil for the development and extraction of hydrocarbon in the Rakushechnoye oil and gas field.
SOG was meant to carry out all operations related to the production of petroleum production, for and on behalf of CaspiOil, to study, appraise, develop, and produce the relevant petroleum reservoirs of the oil field.