MAX PETROLEUM PLC updated on own financial position and operations
07.07.15 09:48
/KASE, July 7, 15/ – MAX PETROLEUM PLC (London), whose shares are officially
listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following
information statement of July 3, 2015:
quote
Max Petroleum announces that Sberbank has unconditionally granted a six
month standstill on all principal and interest payments due under the
Company’s c.US$80 million loan through to 14 December 2015. In addition, the
Company has accrued US$3.8 million of interest as of 30 June 2015. Interest
will continue to accrue during the standstill period.
The Company continues in operation under severe financial stress, currently
producing in excess of 3,500 barrels of oil per day, including from the Sagiz
West field after regulatory permission was granted in June to resume production
from both Sagiz West and East Kyzylzhar I fields under Trial Production Phase.
East Kyzylzhar I field commissioning and return to production of several
hundred additional barrels per day is also expected in the next week.
Max Petroleum has received notification from the Ministry of Finance of the
Republic of Kazakhstan alleging that, under tax legislation, payments of over
US$20 million are due for Soviet-era historical data costs incurred in the
Company’s Blocks A&E licence area. The Company disagrees with this
interpretation and application of the tax legislation and considers that to date
it has met its obligations to reimburse historical costs as they fall due.
The Company intends to put its case to the tax authorities. Discussions with
AGR Energy continue to secure financing to ensure the ongoing viability of the
business and with Sberbank for a longer term debt restructuring. The Directors
of Max Petroleum currently continue to believe that there remains a reasonable
prospect that such discussions could result in a sufficient refinancing of the
Company and, on that basis, have not yet put the Company into administrat