LONDON (ShareCast) - Shares in oil and gas company Max Petroleum (Other OTC: MXPTF - news) pulled back sharply on Thursday after an strong leap earlier in the week despite the company reporting a solid update on its reserves levels at the March year-end.
At the end of March 2014, the group had an estimated 9.5m barrels of oil equivalent (boe) in proved and probable reserves, down 14% compared to the 10.9m boe reported one year earlier.
It was, however, up 11% on the 8.6m boe estimated at the end of September.
The total proven, probable and possible reserves were up 7% to 10.4m, compared to 9.7m boe six months earlier.
The post-tax net present value discounted at 10% was $140m, compared to $184m a year previous and $157m at the end of September of 2013.
Total (NYSE: TOT - news) production during the fiscal year ended 31 March 2014 averaged 3,899 barrels of oil per day (bopd), up 17% on the prior year.
"Production during the first two months of the current fiscal year has been variable, but averaged approximately 4,500 bopd," the group added.
Shares had fallen 22.67% to 1.45p by 13:35.
"All in all, a good set of numbers. With that said however, the shares have almost doubled in last few days, probably offsetting a lot of the good news from today," said analysts at Oriel Securities.
Max shares soared on Tuesday after the company said that a development well in the Zhana Makat Field in Kazakhstan encountered hydrocarbons in Jurassic sandstone reservoirs in line with expectations. The ZMA-E7 well will be placed on production "as soon as practicable", it said.
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