Kazakhstan focused oil company, Max Petroleum, is being squeezed both operationally and financially, an update revealed today.
The firm is struggling to complete drilling at its NUR-1 well; the problem appears to be "anomalously high pressure" which has left the drill pipe stuck at 5,772 metres, but that is far from Max Petroleum's only problem, as its exploration licence runs out in March 2013 and the technical difficulties clearly put that timeframe in danger.
One possible solution is to invest more money in the project but money is also fast running out.
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
The firm's overdraft limit is $58m, of which it has a used up $54.2m. Rather ominously, today's update says: "In the absence of additional funding the Company may have to significantly curtail its intended exploration activities."
This is seriously bad news, which the market has not been slow to price in, at 9:14 Max Petroleum's shares were down 54%.
BS
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
