Max Petroleum PLC Financial and Operational Update (0928I)
March 20 2015 - 11:57AM
UK Regulatory
TIDMMXP
RNS Number : 0928I
Max Petroleum PLC
20 March 2015
20 March 2015
Max Petroleum Plc
("Max Petroleum" or the "Company")
Update re financial and operational position
Max Petroleum announces that, following the suspension of
trading in its ordinary shares on the AIM market of London Stock
Exchange plc on 2 March 2015, it has continued to discuss an
appropriate debt restructuring with Sberbank and an equity
investment from AGR Energy. In addition to a debt restructuring and
equity investment, the Company also requires bridge financing of at
least US$6.5 million to ensure the Company is viable for the period
until the regulatory and other approvals can be in place to permit
the debt restructuring and equity investment, if agreed.
The Company has been notified that its operational bank accounts
in Kazakhstan will be suspended as a result of non-payment of sums
owed to the Kazakh tax authorities. In addition, export sales have
been halted due to uncertainty over the Company's ability to
guarantee future payment for transport and other costs necessary to
ensure delivery of such sales.
As a result of the demobilisation of the Company's last workover
rig, due to non-payment of invoices, production has so far been
impacted by the failure of one producing well at Zhana Makat,
representing a loss of approximately 170 barrels of oil per day
(bopd), which the Company will be unable to get back into
production until it procures a replacement workover rig.
Sagiz West production has been shut-in until regulatory
permission is granted for it to proceed to Trial Production Phase,
expected if an extension is granted to the Blocks A&E Licence
later in 2015. Total current production from producing wells at
Zhana Makat, Borkyldakty and Asanketken is approximately 3,100
bopd, which is being delivered on a non-cash basis as settlement
towards the Company's domestic crude oil sales prepayment
liability.
The Directors of Max Petroleum currently continue to believe
that there remains a reasonable prospect that ongoing discussions
could result in a sufficient refinancing of the Company, including
bridge finance, being agreed with Sberbank and AGR Energy in the
very near future and, on that basis, have not yet put the Company
into administration.
A further announcement will be made in due course.
ENQUIRIES:
+44 (0) 20 3713
Max Petroleum Plc 4015
Tom Randell
Stifel Nicolaus Europe Limited
+44 (0) 20 7710
Michael Shaw 7600
Tom Yeadon
Save where the context requires otherwise, capitalised and
technical terms used in this announcement shall have the same
meaning as ascribed to them in the Company's circular to
shareholders dated 12 November 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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