Not great news for MXP shareholders as the second drill comes in dry. MXP are drilling 4 x shallow wells and the first well appears to be a success subject to further tests. With two further wells to go – they really need another success to bolster the production story and no doubt appease their chief lender in MacQ to extend the repayment model.
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20 September 2012, Max Petroleum Plc
Drilling Update
Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, today announced that it has completed drilling the DOSNW-1 exploration well on the Dossor North-West prospect on Block E. The well reached a total depth of 1,334 metres without encountering producible hydrocarbons and will be plugged and abandoned. The Zhanros rig will now move to drill the Besbolek North-East exploration prospect in Block E targeting 10 mmbo of mean resources.
Hi Hub,
interesting that UBS have issued another RNS today that they have increased their share position yet again by yet another 7M shares. What is your take on this? They keep increasing their stake and presumably they are not mugs..
it’s a little more complicated than that from what I can see. It looks like the Feb 2015 equity swaps have either been exercised or switched. The equity swaps have however increased by circa 5mln with normal stock increased by circa 3mln.
Not sure why they would have increased the equity swaps but either way the balance of their holding is split virtually 50:50 between standard stock and equity swaps.
HUB
Seems like a duster was almost priced in already – SP went down 5% yesterday (20Sep) and bounced back 4-5% today (21Sep). A broker note from Brendan Long (If i remember correctly) actually mentioned a hit (7mmbo) would have added 5p on the sp?!?! – don’t understand how that’s possible when the BCHW-1 (10mmbo) hit – although not proven commercial yet – only added a tenth of that , around 0.5p on the SP.
Also, what sort of bounce is there to be expected if they farm out 75% of NUR-1 for a free carry? Something is better than nothing in my opinion (reference to license expiry) and as time runs out you lose leverage.
Needless to say I’m frustrated with BoD performance and lack of info but I do hope there is some light at the end of the tunnel!
Its not like Max to come out dry on a shallow! On another note, XEL price action today was not unexpected but still, 18% off seems rather harsh. I was out at 130p first thing, after holding an average of 128p for the last 6 months. Still, I will be back as usual, when the price settles. What was shocking was Barclays system failure until 8.30am where no trades even over the phone. I dont have an account with them thankfully!