News

December 15, 2009

No Shortage Of Newsflow Expected As Max Petroleum Readies For Its One-A-Month Exploration Campaign In Kazakhstan

It is a sign of the times that Max Petroleum’s interim results were dominated by its recent debt restructuring, further evidence of the financial challenges facing small cap E&Ps in these credit-choked times. AIM-quoted Max, which holds three blocks covering 13,500 sq km of the Pre Caspian Basin in Kazakhstan, posted a loss of US$113.9 million for the six month period ended September 30, eclipsing the US$3.4 million profit posted this time last year, as the accounts absorbed US$101.9 million of non-cash charges relating to the restructuring of the mezzanine debt and convertible bonds.

August’s restructuring was an important event for Max, providing additional financial flexibility as it embarks on a 12-well exploration programme designed to unlock some 250 million barrels of oil equivalent. The company has increased its borrowing base with Macquarie Bank from US$50 million to US$80 million and deferred initial repayment of principal until January 2011.  The outstanding convertible bonds were restructured in May 2009, deferring the maturity date until September 2012 and...