Max Petroleum, an oil and gas company focused on Kazakhstan, has agreed an equity for services agreement with Zhanros Drilling.
Under the terms of the agreement, Zhanros will drill up to four wells in exchange for up to 90,322,581 ordinary shares at a price of 5p per share.
Michael Young, President and Chief Financial Officer of Max Petroleum commented: "It has been our top priority to get financing in place to enable us to drill the remaining shallow exploration prospects in our portfolio.
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"We believe they are some of the best shallow prospects we have generated and it is crucial for Max Petroleum and our shareholders that we test them before the exploration period of our licence expires in March next year.
The agreement with Zhanros allows us to continue with our post-salt exploration programme at a critical time as we work towards a broader financial solution."
Max Petroleum's share price has tanked this year, falling 60% since January although today's news has lifted the stock 11% in early trading.
BS
