30th Dec 2013 09:01
LONDON (Alliance News) - Max Petroleum PLC Monday reported lower revenue, production levels and widened its losses in the first half of the year from a year before, but said that its first-half results showed a marked improvement on the last six months of the previous financial year.
The oil and gas exploration and production company focused on Kazakhstan said that its loss for the six months to September 30 widened to USD5.0 million, compared with USD3.6 million a year earlier. However, it said that compared with the previous six months ended March 31, it narrowed its losses from USD6.5 million.
Max Petroleum reported a 3.7% fall in production to 3,630 barrels of oil per day during the half, compared with 3,770 barrels of oil per day a year earlier. In comparison to the six months ended March 31, however, production increased by 24%.
The company said that production for the fiscal year ending March 31, 2014, is now expected to average approximately 4,000 barrels of oil per day, a downward revision from its previous guidance of 4,500 to 5,500 barrels of oil per day. Max Petroleum said that this is due to regulatory delays in turning on several wells for test production, and the absence of forecast production from several unsuccessful wells drilled during the year to date.
The group said that revenue declined by 5.9% to USD46.3 million in the recent half, from USD49.2 million in the comparable period last year, but rose 5% when compared with the six months ended March 31.
Cash generated from operations for the first half of the year declined by 69% to USD9.6 million, from USD31.1 million a year earlier. However, Max Petroleum said that cash generated from operations rose 3% when compared with the six months ended March 31.
During the six months ended 30 September 2013, the group drilled 19 post-salt wells, including 17 appraisal and development wells, of which 15 were successful.
Max Petroleum said that it is on target to drill 35 wells this fiscal year, with the average cost per well drilled since the end of the previous fiscal year of USD0.9 million, approximately 24% below originally budgeted costs.
It also confirmed successful drilling results at an appraisal well in Sagiz West Field.
The group reported capital expenditure of approximately USD33 million during the six months ended 30 September and has forecast total capital expenditure for the fiscal year ended March 312014 of between USD45 million to USD50 million, of which it said that approximately USD39 million has been incurred to date.
Shares in Max Petroleum were down 9.1% in early trading Monday at 3.45 pence per share, putting it among the top 10 AIM losers.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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