Nov 27 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
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
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