MAX PETROLEUM PLC continues negotiations with AGR Energy and Subsidiary Bank Sberbank of Russia

09.02.15 17:18
/KASE, February 9, 15/ – MAX PETROLEUM PLC (London), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following information statement: quote Recent material fall in oil price means Group will be insolvent without debt restructuring and additional financing Subscription by AGR Energy will not proceed Discussions with AGR Energy continue with respect to an investment in the Group Negotiations continue with Sberbank to restructure the debt facility. The fall in the oil price since November 2014 has had a very severe adverse impact on the Company's current and forecast liquidity position in 2015 and beyond. As a result, Max Petroleum's business has been rendered unviable unless further material investment is made into the Company in addition to there being a comprehensive debt restructuring agreed with Sberbank. Negotiations with Sberbank regarding the terms of such debt restructuring have so far not been successful. While, as a result of the above, the Subscription by AGR Energy will not proceed, Max Petroleum continues negotiations with Sberbank regarding an appropriate debt restructuring and with AGR Energy regarding an equity investment that, together with the debt restructuring, would render the Company viable at current oil prices (being some 50% below their level when the AGR Energy Subscription was proposed in August 2014 and 30% lower than when shareholders approved the Subscription in December 2014). unquote The said information is available on KASE website at http://www.kase.kz/files/emitters/GB_MXPT/gb_mxpt_reliz_090215.pdf [2015-02-09]