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Quick take: Sumatec shares jump 250% in early trade

KUALA LUMPUR: Sumatec Resources Bhd surged 250% in early trade Wednesday after its business partner, CaspiOilGas LLP (COG) has successfully defended against claims from creditors at the Supreme Court of the Republic of Kazakhstan.

The PN17 company surged 250%, or 2.5 sen to 35 sen. It is the most active counter with over 326 million shares traded. Sumatec-WA jumped 500%, or 2.5 sen to three sen.

Sumatec said it received a letter from COG, owned by its executive vice chairman Tan Sri Halim Saad, stating COG has successfully defended against its creditors’ claims at the Supreme Court of the Republic of Kazakhstan.

COG general director Ilyas Madimov said that the Supreme Court’s decision, which denied all legal redress sought by the group of creditors against COG, is final and binding, without further avenue for appeal as it is issued by the highest competent court of the country.

“With this favourable court decision, COG, now that it has no more unproductive distraction, has proceeded on the oil production front with its 2019 well workovers programme involving a total of eight wells,” Sumatec said.

It added that COG is in advance stage of developing its investment plan for the proposed gas-condensate processing plant.

COG is currently working on well workovers programme which involves eight wells, with a target of resuming production to around 921 barrels per day by end-2019 and further increase to around 1,600 barrels per day by mid-2020.

Source: TheStar