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31 Jan 2014 07:00
Max Petroleum Plc
(the "Company")
Corporate Update
31 January 2014
Max Petroleum Plc, an oil and gas company focused on Kazakhstan, announces that it has begun implementation of a significant cost cutting initiative that it expects to continue for the remainder of FY 2014 and beyond. The initiative recognises the Company's shift from exploration and development to primarily production with a focus on maximising cash flow.
The Company expects to announce in early February a modest Sagiz West reserve increase as of 31 December 2013, resulting from wells that have been drilled since its most recent reserve report. The Company believes there are a few other opportunities to increase reserves, but no longer plans an ongoing level of drilling activity that its current cost structure is intended to support.
The Company intends to maintain the organisational capacity to resume drilling its NUR-1 deep well while efforts to obtain financing continue. Negotiations with prospective partners are, however, no longer currently in progress.
Robert Holland and James Jeffs, Co-Chairmen of the Company, commented, "We expect significant improvement in our cash flow as expected production increases from existing discoveries and cost reductions are realised, although some material transitional implementation costs may be expected".
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