Max Petroleum issues 13m shares to Zhanros Drilling

Kazakhstan-focused oil and gas exploration company Max Petroleum, has announced that on March 6th, it issued 13.39m ordinary shares of 0.01p each in the company at 5p per share to Zhanros Drilling L.L.P.

The company reported that application has been made for the shares to be admitted to trading on AIM on March 13th.

The shares were issued in final settlement of drilling services under the terms of the company's agreement with Zhanros, whereby Zhanros agreed to fund up to $7.0m of drilling and workover ancillary services in exchange for shares.

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Under the terms of the agreement, Zhanros has drilled four shallow, post-salt, wells and funded related ancillary services totalling $6.99m in exchange for a total of 90.25m shares at a price of 5p per share in lieu of cash payment. Max Petroleum said that accordingly, the agreement is now completed in full.

Max Petroleum's share price was up 1.69% to 4.50p at 12:20 on Thursday.

MF