Unfortunately Max have historically been poor at letting investors know what's going on, other than broad-brush strategies. They never tell us anything! Hopefully this will change soon. It would be in their own best interest to let is know what the plan is to get the company back on track. It's all a bit vague at the moment.
I think there will be a gradual build up, firstly publish a development plan for the shallows, let investors know what they are doing proactively for the rest of 2014 before the cold weather sets in, sort out Sberbank and let the market know they are happy to continue their support or advise which ever funder is prepared to replace them and at what terms ? then medium term for new drills (nur 1 ? ).................................................................... This is extremely positive, from being a pure debt repayment vehicle it now has a future, ok with double the shares but everyone needs to profit from this deal, existing/surving board/new investors and us PI's.5p within next 24 months.
Re production rates - if you look at the RNS stating why AGR Energy are investing in Max then it's clear why they need the money. Average production rates actually seemed to have dropped...we were told that Max should be aiming for 5000-6000bpd by now by it's more like 3500. It'll take another $10-20 million to develop the recent finds and they just don't have this money. So a lack of available funds plus needing a lot more money to develop existing finds plus having to pay back Sberbank would I think have sunk the company if more cash wasn't forthcoming. So whilst a x2 dilution of existing shares isn't exactly great news, the fact it keeps the company going is obviously welcome.
Also NUR1...yes I hope there is renewed interest in this as well. It's hard to imagine why AGR Energy would invest in Max without been interested in restarting NUR1 also.
Time will tell I guess. I think we need to wait another 12-18 months for anything really interesting to happen though...
I think the data and the positive wells we have drilled coupled with the acreage there is a confidence esp after the success RXP have had along with the fact that the super giant Tengiz is local it would be silly not to drill the 2 deeps we have. Production should also be ramped up, so all in all I hope for better days ahead!
Also just to show how bad my investing "skills" are....about 6 weeks ago I had my finger over the 'buy' button for RXP and thought "nah I never invest in anything decent" and didn't buy any shares. Have a look at RXP now...I would have made a fortune!
I don't think the new investors intend to run Max in to the ground - the existing Bod already did that! We don't really know what their intentions are and to be honest I don't really care - I'm beyond caring what happens to Max now anyway. I harbour some hope that NUR-1 might get restarted now due to the new funds/investors but I aren't holding my breath.
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