Revenue doubles at Kazakhstan-focused oil company Max Petroleum

Max Petroleum, the AIM-listed oil and gas exploration and production company focused on Kazakhstan, has published its interim results for the six months ending September 30th.

Revenue rose 102% to $49.2m during the six months compared to the corresponding period in 2011.

Total sales volume was up 58% to 664,000 barrels of crude oil in the same like-for-like period.

The average realised price of $74.07 per barrel (bbl) was up 28% from $57.93 per bbl during the six months ending September 30th 2011, due to increased export volumes relative to domestic sales.

Cash generated from operations of $31.1 m was up 291% from $7.9 m in the comparative period.

The group made a loss before tax for the period of $0.5m, compared to a loss before tax of $0.3m the year before.

The joint Executive Co-Chairmen Robert Holland and James Jeffs commented: "This half year period has been extremely challenging for the company and our shareholders. We experienced a major setback with our deep, pre-salt well at NUR-1, leading us to suspend the well in July 2012 as we sought additional capital to refinance, in whole or in part, our senior debt facility with Macquarie Bank and fund our ongoing exploration and production activities. With approximately $140m of senior and convertible debt maturing in 2013, the need to comprehensively restructure our balance sheet became a critical priority to ensure the future viability of the company.

"In November, we were pleased to announce the execution of a $90m senior debt facility with SB Sberbank JSC as part of a broader restructuring proposal that will reduce the group's overall debt burden by approximately 36% to $90m.

"The restructuring will refinance the Group's existing credit facility with Macquarie, redeem all of the company's outstanding convertible bonds for a combination of cash and shares, and provide up to $30m in additional liquidity to fund the group's post-salt exploration and development programme."

MF