Max Petroleum gets financing deal for well campaign
Max Petroleum, an oil and gas company focused on Kazakhstan, has agreed an equity for services agreement with Zhanros Drilling.
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.
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
"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
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published
-
How to invest in copper
It may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
By Dominic Frisby Published