Shares in Max Petroleum, an oil and gas exploration and production company focused on Kazakhstan, plunged after the firm admitted it needs extra capital in order to complete the NUR-1 well at the Emba B Prospect in Block E.
As a result of the funding shortage the company is releasing the Saipem National 1625 DE onshore deep drilling rig which has been operating on the well.
Once once have been sourced, the company will need to seek regulatory approval to drilling the well beyond the current deadline of March 4th 2013, and is considering options to separately finance the completion of the NUR-1 pre-salt well.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In a statement the firm said negotiations are also currently ongoing with debt and equity providers to provide financing to complete the company's post-salt exploration programme and underpin future appraisal and development drilling.
The share price fell 9.52% to 2.85p by 08:30.
NR
-
The best properties for sale for around £500,000Properties for sale for around £500k – from a Grade II-listed former rectory in County Durham to an early 19th-century chateau in southwest France.
-
M&S recovery has momentum: will it stick?After years of decline, M&S seems to have turned a corner. But is this just a “dead cat bounce”?
