Max Petroleum up as new well dig begins

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.

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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