The Company wishes to inform that CaspiOilGas LLP (“COG”), General Director Mr. Saubay Izbassarov has written and brought to Sumatec Resources Berhad (“SRB”) attention on Sunday (21.01.2018) that COG has entered into a Presale Gas Agreement  with NIPIneftegas Consortium (“NIPI”) which includes a sale of 6.2 bil m3 (approximately 36.5 MMboe) of gas to NIPI over 15 years at market gas price. NIPI led Consortium will convert the feed gas into petroleum products through a proprietary Gas to Liquid (“GTL”) technology.

NIPI is a well-known company in the Oil and Gas Industry of the Republic of Kazakhstan which is headquartered in Aktau. It has offices in all the major cities of Kazakhstan as well as in London and Moscow. NIPI has invested in a wide range of technical and commercial services for the development of onshore and offshore oil and gas fields.

The proposed Capital Expenditure (“CAPEX”) for the Gas Utilisation Plan which is tied to the Gas Development Production Agreement ("GDPA") between SRB and COG will start at USD60mil and the total CAPEX of the plant over the period to bring it to full capacity will be USD360m. The first phase of the plant operation is expected to start in 2019. The GTL plant will be funded and operated by the NIPI led Consortium. The Presale Gas Agreement allows for COG or SRB to take up participating equity in the GTL plant at a later date if either party chooses to opt in.

In addition to the sharing of the oil produced under the Joint Investment Agreement (JIA) executed between SRB and COG, SRB will receive share of the oil/condensates produced, as well as the fee for processing the raw gas prior to the sale/supply to NIPI.

SRB is excited with the Presale Gas Agreement and the benefits that it will bring to both COG and SRB.

For full information on the field report, please refer to http://sumatec.com/press-releases.php

This announcement is dated 22 January 2018