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
-
Trump wants to colonise Mars – will it happen?Donald Trump wants to plant the US flag on Mars. Could humans really live there?
-
Klarna postpones US IPO as Trump's tariffs rattle marketsBuy-now-pay-later lender Klarna has postponed its US initial public offering owing to the market turbulence. It is not alone, says Matthew Partridge
