Sumatec buys 65% of Indon oil company

The Star, 11 May 2005

SUMATEC Resources Bhd said its sub-subsidiary Sumatec Petroleum Development Sdn Bhd had entered into a heads of agreement to acquire a 65% equity interest in Indonesia’s PT Petro Java Energy. 

Sumatec said in a statement to Bursa Malaysia that Petro Java Energy was negotiating a 20-year joint operations contract for a marginal oil field in Eastern Java with PT Pertamina, the national oil company of Indonesia. 

It said the field had proven reserves of 95 million barrels of oil and a recoverable oil output of 24 million barrels based on a recovery factor of 25%. 

The development cost for the field is forecast to be low, as the oil is found at only 300-500 meters below the surface and oil production is expected to be 5,000 barrels per day. – AFX-Asia 

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