We refer to Reach Energy Berhad (“REB” or “the Company”) announcement dated 17 November 2020 in respect of the Statement of Claim received by the Company’s sub-subsidiary, Emir Oil LLP (“EO” or “the Defendant”) from Ministry of Energy (“MOE” or “Plaintiff”) in Kazakhstan on violation of gas dispersion at the operating EO facilities.

The Board of Directors of REB would like to update that the Court in Kazakhstan (“the Court”) had on 19 November ruled that EO had lost the court case and should pay for the damages amounting RM3,181,000 (KZT 332,271,208). The Court further indicated that EO could file its appeal before 19 December 2020. Currently, the Company is seeking necessary legal advice to resolve and/or to defend the legal suit.

The Company will make necessary announcements to Bursa Malaysia Securities Berhad as and when there are further developments in relation thereof and/or upon receipt of any further directions by the Court.

This announcement is dated 19 November 2020.