Max Petroleum looks at restructuring debt via new credit facility
Nov 27 (Reuters) - Kazakhstan-focused oil producer Max Petroleum Plc said it would refinance and restructure its debt through a new $90 million credit facility with SB Sberbank JSC and a tender offer to bondholders.
The news sent shares in the company up as much as 12 percent.
The company said it would cancel its existing senior credit facility with Macquarie Bank Ltd.
Max Petroleum said its total debt would be reduced to $90 million from about $140 million following completion of the restructuring.
The company, valued at about $68 million, said net cash of about $30 million would be made available for drilling future production and exploration wells and associated costs.
Max Petroleum has encountered two dry wells under its four-well agreement with drilling contractor Zhanros Drilling, under which Zhanros agreed to fund $7 million of drilling and workover services in exchange for shares in Max Petroleum.
Shares in the company were up 10 percent at 4.45 pence at 1408 GMT on the London Stock Exchange. (Reporting by Monika Shinghal in Bangalore; Editing by Maju Samuel)
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