20th Mar 2015 16:20
LONDON (Alliance News) - Max Petroleum PLC said Friday it continues to believe that current talks could result in its securing sufficient refinancing, and as such it has not yet put the company into administration.
The company is in discussions over a potential debt restructuring with Sberbank, and an equity investment from AGR Energy. However, it noted that it also requires bridge financing of at least USD6.5 million to ensure it will be viable until regulatory and other approvals can be put in place to permit the debt restructuring and potential equity investment.
Its bank accounts for its operations in Kazakhstan have been suspended due to non-payment of sums owned to tax authorities. Export sales have been halted in the region, due to uncertainty over the company's ability to guarantee future payment for transport and other costs needed to ensure delivery of those sales.
One producing well at Zhana Makat has failed, leading to a loss of around 170 barrels of oil per day, and Max Petroleum said it will be unable to get the well back into production until it procures a replacement workover rig. The previous rig was demobilised due to the company failing to pay invoices.
Additionally Sagiz West production has been shut-in until its gets regulatory permission to proceed to a trial production phase, if it gets an expected extension to its Blocks A&E Licence.
Max Petroleum said that current production from its producing wells at Zhana Makat, Borkyldakty and Asanketken is around 3,100 barrels of oil per day.
"The directors of Max Petroleum currently continue to believe that there remains a reasonable prospect that ongoing discussions could result in a sufficient refinancing of the company, including bridge finance, being agreed with Sberbank and AGR Energy in the very near future and, on that basis, have not yet put the company into administration," the company said in a statement.
Shares in Max Petroleum remain suspended.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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