Welcome to the new thread for Max Petroleum. Here's a link to the MXP web site and a presentation that everyone should read.

http://www.maxpetroleum.com/companypresentations.asp

Not many people watching this but this company is starting to pull in results !....

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, announces an operational and financial update.

The Company has experienced further delays drilling its NUR-1 well and as a result does not expect to reach total depth of 7,250 metres before August 2012. The delays largely result from the drill string becoming stuck in the top of salt in April 2012 at a depth of 5,718 metres. After side-tracking the well and setting casing at 5,681 metres, the Company drilled ahead. However, progress was slow as the Company drilled alongside the stuck drilling tools. After clearing the old wellbore, the well reached the Kungarian Salt on 19 June 2012. Due to encountering anomalously high pressures, the drill pipe has become stuck again at 5,722 metres, despite using the higher density mud specified for penetrating this section. Operations are now ongoing to increase the mud density further, free the stuck pipe by dissolving the salt with fresh water, and continue drilling through the salt to the next casing point at 5,900 metres.

Assuming near-term success in freeing the stuck pipe and normal operations going forward, the total costs for the NUR-1 well are now expected to be approximately US$43 million, with expected forward cost of approximately US$10 million. The Company will announce when it has resumed drilling ahead through the salt and, subsequently, after setting its next string of casing below the salt above the prospective pre-salt section.

In order to allow completion of its exploration drilling programme ahead of the expiry of the exploration phase of its Blocks A&E Licence in March 2013, the Company is working with its senior lender, Macquarie Bank Limited, and has initiated discussions with a number of providers of debt and equity financing, regarding the provision of additional capital. These discussions to date have been impacted by market conditions, as well as recent regulatory changes in Kazakhstan that currently prevent the Company from completing a conventional equity offering. The current outstanding balance on the Senior Credit Facility is US$54.2 million out of a total borrowing capacity of US$58 million through to 30 June 2012. The Company and Macquarie Bank Limited will review the borrowing threshold as part of their semi-annual budget review under the Credit Facility, as well as monthly amortization payments beginning in July 2012. In the absence of additional funding the Company may have to significantly curtail its intended exploration activities.

Moody’s cut Sydney-based Macquarie Group Ltd. (MQG) and Tokyo-based Nomura Holdings Inc. (8604) one level each. Nomura is the lowest rated of the 17 firms at Baa3, one grade above junk.

Huge crash at MXP now.

Overdone ......not good.....but I reckon it will refinance itself.....

How do one refinance itself if it is in debt with cap in hand?

2 caps

Picked up some at sub 4p.....

It's crazy but I've almost doubled my holding around an average 4p....I'm sure they will get some sort of funding because their production is increasing rapidly.....and there is a possibility of striking something big in this deep well......risky but with massive upside....

Crikey...I'd probably break even around 9p or so...unthinkable a few months ago...will not remain so low for long...

With Macquarie Bank being downgraded and in this economy, funding will be very difficult.

still a lot of buying going on so have dipped my toe in to see what happens.,.

I think it has further to fall,i agree with hlyeo on this one.

With so mant banks being downgraded and so many on negative watch risking further downgrade financing isn't going to be easy unless Max are taken over. At these prices Max has got to look attractive.

Max Petroleum plummets after further well delay.


Max Petroleum's (LON:MXP) shares plummeted after it revealed further delays to drilling its NUR-1 well.

And it warned that in the absence of additional funding it may have to curtail its intended exploration activities significantly.

Max says that does not expect its NUR-1 well to reach total depth of 7,250 metres before August.

The delays largely result from the drill string becoming stuck in the top of salt in April at a depth of 5,718 metres.

Assuming near-term success in freeing the stuck pipe and normal operations going forward, the total costs for the NUR-1 well are now expected to be approximately $43m, with expected forward cost of approximately $10m.

The company will announce when it has resumed drilling ahead through the salt and, subsequently, after setting its next string of casing below the salt above the prospective pre-salt section.

In order to allow completion of its exploration drilling programme ahead of the expiry of its A&E licence in March 2013, the company is working with its senior lender, Macquarie Bank, and has initiated discussions with a number of providers of debt and equity financing, regarding the provision of additional capital.

These discussions to date have been impacted by market conditions, as well as recent regulatory changes in Kazakhstan that currently prevent the company from completing a conventional equity offering.

The current outstanding balance on the senior credit facility is $54.2m out of a total borrowing capacity of $58m through to 30 June.

The company says that in the absence of additional funding it may have to significantly curtail its intended exploration activities.

This was the news on MXP at the beginning of 2012...



The Max story was mixed during the course of 2011, ending on two sour notes. The Asanketken well (ASK-2) failed to encounter a viable Triassic reservoir (9 December 2011) and the second well drilled into the Sagiz West field was a dry hole (28 December 2011). These failures on important wells had significant and negative implications for our target price which was brought down to 25.2p (from 35.2p) the note is attached. Moreover, Max announced its Trial Production Project was extended another three months (16 December 2011), which may be indicative of political challenges. But, the stock really started to rally over the past few days (up 40% since end Jan) as traders speculate that it will be the next E&P (after the recent Bowleven M&A activity) that MXP will be next. A quick reminder of the story...

- 2 Strikes, but still not out: After the company had 2 high profile shallow well failures (Asanketken Triassic and SAGW-2), the company’s share price performance will be dependent on the deep well prospect.

- All eyes will be on the Emba-B: This is a huge deep prospect, one that is a potential game-changer for the company profile. The relative importance of pre-salt success has increased significantly, and the first deep exploration well (NUR-1) is expected to produce results around April 2012. A depth of 4,200m has been reached.

- What is in the target price valuation now?: For discovered assets – Zhana Makat 7.1p, Borkyldakty 0.6p, Sagiz West 3.3p, Uytas Cretaceous 1.2p, Uytas Jurrasic 1.7p, Asanketken Jurrasic 2.0p and East Kyzylzhar 2.3p. For Main undiscovered assets – Emba-B (dev2 only) 6.3p.

- Emba B has a 29% chance of success. Success would be worth circa 30.8p from a small fraction of the upside (does not include the de-risking of other prospects).

In the long term MXP has been a disaster.

Talk of a 2p placing soon can see that happening.

No point in buying atm.

That doesn't mean that you will pick them up at that price...if so it will not remain so low for more than a day.....I will buy some more at that price...

Just had a look on What's hot and they say sell.......due to difficulties in raising money......not good at all.....have to say that T1ps,com and What's hot aren't getting much right at all now......endless tips with not much gain for the last few years.....yet the sites are very interesting.....just difficult times....promised a lot this company and now...not so....until things are settled will just hold.....I hope I don't have to put this down as a bad loss......