Oil & Gas Corporate News
Max Petroleum (LON:MXP) (BUY, £0.50) (MXP, 17.25p, ? (2.82%)) published its interim results for the six months ended 30 September 2010. Revenue of US$24.7m, up 20% yoy was generated from total sales volumes of 378,000bbl of oil, down 6% yoy, at an average realised price of US$65.21 per bbl, up 27% yoy. Net cash generated from operating activities was US$3.4m, a 16% decrease yoy and the loss for the period of US$13.3m, compared to a loss of US$113.9 million in the comparative period in 2009, which included US$101.9 million of non-cash charges arising from the restructuring of the Group?s borrowings. The deferred the interest payment on the convertible bonds due 8 September 2010, resulted in a payment in kind of US$3.7m added to the principal of the bonds and the vesting of warrants over an additional 30m shares in the Company at an exercise price of 5p per share. The Group has received written assurance from its senior lender, Macquarie Bank Limited, that upon obtaining the consent of all syndicate participants it will amend the Group?s credit facility to unconditionally waive an upcoming principal payment due 31 January 2011 and defer all outstanding principal until 31 March 2013 subject to the Group raising additional equity financing by 31 March 2011 and extending the maturity date of the Group?s convertible bonds until 8 September 2013. The Group has also received written assurances from the holders of more than 85% of its convertible bonds that they will approve the deferral of the maturity date of the convertible bonds to 8 September 2013, subject to the Group raising additional equity by 31 March 2011. In September 2010, the Supreme Court of Kazakhstan reversed the rulings of the lower courts regarding a previously announced tax claim and remanded the case for reconsideration. Further tax and interest payments towards the tax claim are suspended while the case is pending, including further appeals, up to the Supreme Court, a process that is expected to take a minimum of three months or longer to resolve. In September 2010, the Group executed a drilling contract with Sun Drilling LLP for a second rig capable of drilling to 3,600m. The ZJ-40 rig is on location to drill an exploration well on the Asanketken prospect on Block E, and is expected to commence drilling activities in…
