Kazakhstan-focused explorer Max Petroleum has raised net cash of around $62.5million by selling 51% of its share capital to AGR Energy.
The conditional cash subscription covers 2,264,093,462 new ordinary shares and is subject to a number of shareholder approvals, as well as the appointment of two directors to Max Petroleum’s board nominated by AGR Energy.
Max Petroleum expects the transaction will help fund its planned capital programme and attract potential partners to develop its post-salt fields and maximise reserves and production.
The company is also hoping to benefit from AGR Energy’s expertise in investing in Central Asia, as it is looking to expand its portfolio by new projects in the region.
“This major investment and the expertise and experience of the AGR Energy Group in Kazakhstan are both very substantial positives for Max Petroleum,” said the firm’s chief executive, Robert Holland.
“This partnership will support our plans for the development of our post-salt fields and our work to resume exploration of pre-salt prospects on the Blocks A&E licence.
“The Max platform has demonstrated its operational capability in Kazakhstan and this investment provides us with the strong financial foundation we need to support that platform.”