Max Petroleum gave investors an object lesson in how oil and gas stocks function today.
The firm announced that it has begun drilling another appraisal well at its Sagiz West field in Kazakhstan. Cue a share price jump of 4%, dropping to 2.2% by 10:19am.
Over the last 12 months Max has dropped 54% on AIM as it has struggled to find commercially viable deposits at its concessions.
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
At a failed dig in December, however, the firm said it had seen "extensive shows of oil and gas" near to the well announced today. This has given hope that a major discovery might be in the offing.
BS
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
