Funding dries up at Max Petroleum

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.

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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