Reach Energy Berhad

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT

General Meetings: Outcome of Meeting

$REACH / 5256 (REACH ENERGY BERHAD)
$SUMATEC / 1201 (SUMATEC RESOURCES BERHAD)

Comparison among field basin reserve between owner in Kazakhstan

General Meetings: Notice of Meeting (Amended Announcement)

$REACH / 5256 (REACH ENERGY BERHAD)

Goldman Sees ‘Wall of Money’ Fueling Stock Market’s Summer Party

-Passive inflows, early July strength set up continuing rally
-‘Seeing a re-emergence in retail traders,’ Rubner says

Reach will benefit from this through exchange usd

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT

OTHERSReach Energy Berhad ("REB" or "the Company")
WITHDRAWAL OF ORDINARY RESOLUTION 6 - TO RE-APPOINT PRICEWATERHOUSECOOPERS PLT AS THE COMPANY'S AUDITORS AND TO AUTHORISE THE BOARD OF DIRECTORS TO DETERMINE THEIR REMUNERATION FROM THE NOTICE OF THE 11TH ANNUAL GENERAL MEETING ("11TH AGM")

$REACH / 5256 (REACH ENERGY BERHAD)


I foresee some potential step to be taken by management upon submit regularisation plan before oct 2. management actually having hold this 2 cards in prepare for upcoming submission.

a)retained emir oil LLP(EO) asset under Reach
-own lucrative asset in kazakhstan near integrated facilities.


possibilities to happened
- share enlargement or private placement
- bank finance / loan / bond

most probably through finance would be viable since enlargement dilute ownership of srl.

however in order to stable on operation, financing needed around 50mil to 100mil.


b)dispose EO
disposal of EO would be good choice too. for usd300mil, reach possibly can use for searching better asset. share price is expected to fly up rm0.6 apprxm.

summary:
for short term option b is good . asset monetized. new owner have time to restructure new direction.

for long term option a is good.kazakhstan is great location with higher reserve. if company have cash power this is best option

my view from shareholder side:

i see winning. either option a or b, both winning. shareholder have nothing to lose.

$REACH / 5256 (REACH ENERGY BERHAD)

is the valuation really usd300mil (rm1.422bil) for emir oil asset?

lets compare apple to an apple

sumatec
sumatec once to acquire markmore energy (labuan) owned rakuschnoye field aktau province for rm1.55bil.

reserve oil and gas slight higher than emir oil .

$REACH / 5256 (REACH ENERGY BERHAD)

it is said that valuation of emir oil llp is equivalent to usd300mil based on news. ( exchange rate myr= 4.741) (RM1.422bil)

outsanding share : 2.128 bil

fair value : RM 0.67

Hammer capital aka SRL would have Reach close to 67sen if they choose to dispose kazakh asset. something to ponder why they still keeping the asset. i think they believe asset must be worth more than above said.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

$EDGENTA / 1368 (UEM EDGENTA BERHAD)
$REACH / 5256 (REACH ENERGY BERHAD)
$SAPIND / 7811 (SAPURA INDUSTRIAL BERHAD)

case studies

$DNEX / 4456 (DAGANG NEXCHANGE BERHAD) once own small portion Ping Petroleum decided to dispose all shares but making u turn acquire 90% of Ping later on.

$SUMATEC / 1201 (SUMATEC RESOURCES BERHAD) once joint operation with mell, borneo energy producing oil at the rakuschenoye field kazakhstan. later on proposed to acquire 100% field concession.not just that they also proposed to acquire buzachi field owned bu buzachi neft

for $REACH / 5256 (REACH ENERGY BERHAD) case, there is rumours on company to dispose emir oil ,kazakhstan for rm1.3bil. however company decided to retain.


what to learn from here?

if asset is good people wont dispose.if really Reach kazakhstan is not good asset then rm1.3 bil is already good hand.

$REACH / 5256 (REACH ENERGY BERHAD)

Here is some of Reach enticing soup content of:

NTA : 9 sen
Price to Sales : 41 sen

Book Value of Reach Concession : 86 sen

Company shows 4 consecutive years Revenue stream increase gradually comprises from 3 groups:
Crude oil
2020 - 77.25m
2021 - 148.16m
2022 - 166.51 m
2023 - 189.8m

Gas
2020 - 2.29m
2021 - 2.53m
2022 - 2.95m
2023 - 2.42m

Additional
petroleum process
2023 - 16.45m

Barring any unforeseen circumstances, Reach is expected to provide green result for this coming quarter.

Be advised that all of this above is just an opinion based on fact and analysis. Trade at your own risk.

Tuan Capital

$REACH / 5256 (REACH ENERGY BERHAD)

quarter result will be out on 27 May 2024

$REACH / 5256 (REACH ENERGY BERHAD)

Chapter 2 : Why Reach likely to become next $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD) and unlike to become $SUMATEC / 1201 (SUMATEC RESOURCES BERHAD)

1) Hibiscus and Reach own concession while Sumatec was in joint operation.
2) Reach survived good and bad time of oil price volatility. They dont stop making production while sumatec halt operation due to lower oil price
3) Kazakhstan is 12 biggest oil reserve in all countries aktau is one of biggest reserve hold in kazakhstan region.
4)Shareholder have high interest in concession

$REACH / 5256 (REACH ENERGY BERHAD)

Chapter 1: Truth Behind Abstract Art

Abstract can be hard to understand. Full complexities. It may take up to 1 Day 1 week 1 year 1 month 5 year 10 year timeframe perhaps more whole life to understand in which ever way you perceive.

Reach business actually making money. Why i said so?

1)Profit & Loss account can be creative but Statement Cash flows will the truth. especially in the operation.

2)Company heavily invest for growth - acquisition on plant and equipment

On 2023 annual report recorded large impairment figure, its believed that this coming quarter will report green. Clean slate policy.

Another catalyst, Reach got really big financial backed up from Super Racer Ltd who owns 48.5% and also own 40% Kazakhstan oil concession owner Emir oil through takeover from MIE Holdings making them direct and indirectly own 59.4%. They have major interest and experienced in oil and gas.

Emir Oil has oil reserves with book value of RM944 million or 86 sen per REB shares and REB would require significant funding commitment towards the development of the Emir Oil’s oil reserves before the value of the reserves can be realised. Since financial backed have come aboard, Reach future is believed to be promising.

Be advised that all of this above is just an opinion based on fact and analysis. Trade at your own risk.

Tuan Capital

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT

AUDIT REPORT - MODIFIED OPINION / MATERIAL UNCERTAINTY RELATED TO GOING CONCERN : MATERIAL UNCERTAINTY RELATED TO GOING CONCERN

Annual Report & CG Report - 2023

General Meetings: Notice of Meeting

OTHERSReach Energy Berhad ("REB" or "the Company")
ACCEPTANCE OF LOAN FACILITY OF USD6.4 MILLION (APPROXIMATELY RM30.3 MILLION) GRANTED TO SUB-SUBSIDIARY, EMIR-OIL LLP

Notice of Interest Sub. S-hldr (Section 137 of CA 2016) - CHEUNG SIU FAI

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : OTHERS

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : OTHERS

MATERIAL LITIGATIONReach Energy Berhad ("REB" or "the Company")
- Court Case in Kazakhstan between Emir-Oil LLP ("EO") and Ministry of Energy of the Republic of Kazakhstan ("MOE")

PRACTICE NOTE 17 / GUIDANCE NOTE 3 : MONTHLY ANNOUNCEMENT

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

$REACH / 5256 (REACH ENERGY BERHAD)

MATERIAL LITIGATIONReach Energy Berhad ("REB" or "the Company")
- Court Case in Kazakhstan between Emir-Oil LLP ("EO") and Ministry of Energy of the Republic of Kazakhstan ("MOE")