Max Petroleum Revenue Increases 86%

August 22, 2013

In a financial statement, Max Petroleum has reported that its revenue during the year ending March 31, 2013, was $93.3 million, up 86% compared to its revenue of $50.2 million in the year ending March 31, 2012.

According to the company, average realised selling prices increased 51% as a result of increased exports relative to domestic sales since the Zhana Makat field entered full field development, providing the Group with the right to export up to 80% of the field’s production.

The company also entered into a $90 million loan agreement with SB Sberbank JSC to refinance the Group’s senior debt facility, redeem all of the Group’s convertible bonds for a combination of cash and shares, and provide up to $36.6 million for drilling future post-salt wells.

Max Petroleum financed four of the post-salt exploration wells drilled during the year by executing a $7 million equity for services agreement with Zhanros Drilling LLP.

In operations, Max Petroleum received regulatory approval to extend the exploration period of the Blocks A&E Licence by two years until March 2015. This should allow the group to continue the exploration, appraisal and development of its post-salt assets, as well as additional time to complete drilling the pre-salt NUR-1 well.

The Asanketken field was granted trial production status in May 2013 and the Borkyldakty field was granted full field development status in July 2013.

During the year ended 31 March 2013, the Group drilled nine post-salt wells, including five exploration wells generating two commercial discoveries at Baichonas West and Eskene North, and four successful appraisal and development wells.

In August 2013, the Group entered into a memorandum of understanding with Halliburton Kazakhstan LLP for the provision of integrated project management services for the drilling and completion of the NUR-1 pre-salt well.

Since 31 March 2013, the Group drilled 12 post-salt wells, including nine successful appraisal and development wells, one non-productive appraisal well and two exploratory dry holes.

Currently the Group is producing in excess of 4,500 bopd, including 2,900 bopd from fields in full field development. The Group expects average daily production for the year ended 31 March 2014 to be between 4,500 and 5,500 bopd.

Source: Max Petroleum, 2013.