Max Petroleum: 2013 Annual Report and Accounts and Notice of AGM
Max Petroleum, an oil and gas exploration and production company focused on Kazakhstan, today announces the publication of its annual report and accounts for the year ended 31 March 2013. The Company also announces that its Annual General Meeting will be held at 11:00 am on Wednesday 25 September 2013, at the Lansdowne Club, 9 Fitzmaurice Place, Mayfair, London W1J 5JD. A copy of the Company’s annual report will be available on the Company’s website at www.maxpetroleum.com and will be posted to shareholders with the notice convening the Annual General Meeting providing details of the venue, on or before 30 August 2013.
Financial highlights:
* Revenue of US$93.3 million during the year ended 31 March 2013, up 86% compared to US$50.2 million during the year ended 31 March 2012.
* 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.
* Entered into a US$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 US$36.6 million for drilling future post-salt wells.
* Financed four of the post-salt exploration wells drilled during the year by executing a US$7 million equity for services agreement with Zhanros Drilling LLP.
Operational highlights:
* Received regulatory approval to extend the exploration period of the Blocks A&E Licence by two years until March 2015, allowing 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.
