Max Petroleum Plc, an oil and gas exploration and development company focused on Kazakhstan, today announced its interim results for the six months ended 30 September 2008. A summary of the Group’s financial highlights are as follows:
- Profit attributable to equity holders of the Company for the period of $3.4 million (2007: loss of $13.8 million), or $0.01 per share (2007: loss of $0.04 per share)
• Revenue of $31.5 million from the sale of 372,000 barrels of crude oil (“bbls”), or $84.67 per bbl (2007: revenue of $6.6 million from the sale of 127,000 bbls, or $51.72 per bbl), consisting of:
• Export sales of 292,000 bbls generating revenue of $27.7 million, or $94.91 per bbl (2007: export sales of 95,000 bbls generating revenue of $5.7 million, or $59.96 per bbl), and Domestic sales of 80,000 bbls generating revenue of $3.8 million, or $47.20 per bbl (2007: domestic sales of 32,000 bbls, generating revenue of $0.9 million, or $27.64 per barrel)
• Cost of sales of $13.2 million, or $35.46 per bbl (2007: $4.2 million, or $33.20 per bbl). Cost of sales includes $2.7 million in custom export duty implemented during the current period and $4.7 million in amortisation
• Capital expenditures for oil and gas exploration and appraisal costs totalling $26.0 million (2007: $35.0 million)
• Net cash flow generated from operations of $14.7 million (2007: used in operations of $4.2 million)
• Cash balance of $5.3 million as at 30 September 2008 (31 March 2008: $3.8 million)
• Total borrowing base of $50 million under the Group’s mezzanine credit facility with Macquarie Bank Limited (“Credit Facility”) with $36 million outstanding as at 30 September 2008 (31 March 2008: $23.5 million) and $44.5 million drawn down to date.
The Group’s interim financial statements have been prepared on the basis that it is a going concern, which contemplates the realisation of assets and satisfaction of liabilities in the normal course of business. The review opinion from the auditors does however contain an emphasis of matter regarding material uncertainty about the Group’s ability to continue as a going concern.
Mark Johnson, Chief Executive Officer, commented:
“Although I am pleased with the Group’s operational and financial performance over the interim period, the immediate focus of management and our board has been to intensify our efforts to fund our 2009 – 2010 drilling programme in order to capture the value of our exploration assets in Kazakhstan.
Due to the unprecedented economic climate of falling oil prices, collapse in global financial markets and difficult credit environment, we are considering all avenues as we seek additional capital to execute our strategic plan. Potential sources of capital include an increase in our borrowing base under our existing Credit Facility, proceeds from the farmout or sale of interests in one or both of our existing oil and gas licences in Western Kazakhstan and additional third party debt or equity financing, if available.”
