KUALA LUMPUR (Feb 20): Oil and gas services provider Sumatec Resources Bhd has risen 5.88% after it had announced a slew of corporate proposals related to its Kazakhstan projects, with its plan to raise some RM400 million via private placement, share issuance and rights issues with warrants last Friday.

At 10am, Sumatec rose half a sen to 9 sen, with 7.38 million shares traded.

The company has also inked an agreement with Ken Makmur Holdings Sdn Bhd and Markmore Energy Labuan Ltd to produce liquefied petroleum gas (LPG) and condensate, as it seeks a new source of income.

Sumatec has proposed to issue up to 800 million shares to its contractors, who will be appointed to assist in the Petroleum Operations by providing specialised services, materials and equipment.

Sumatec has proposed a renounceable one-for-two rights issue of up to 3.23 billion shares, together with up to 3.23 billion warrants at an indicative issue price of 10 sen per rights share, on the basis of one rights share for every two existing shares in Sumatec held together with one warrant for every one rights share subscribed.

Sumatec said it intends to produce LPG from the 100 million standard cubic feet per day of natural gas supplied from the Rakushechnoye oil and gas field in Kazakhstan, which is expected to generate an overall return of 20% per year.