Max Begins Implementing 'Significant' Cost Cutting Program

Kazakhstan-focused junior oil firm Max Petroleum reported Friday that it has begun the implementation of a "significant cost cutting initiative" that it expects to continue for the remainder of 2014 and beyond. The company said the initiative recognizes the company’s shift from exploration and development to primarily production, with a focus on maximizing cash flow.

Max said that it expects to announce in early February a modest Sagiz West reserve increase, 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.

Max intends to maintain the organizational capability it needs to resume drilling its NUR-1 deep well, while the firm's efforts to obtain financing continue. It warned, however, that negotiations with prospective partners are no longer currently in progress.

Senior board directors Robert Holland and James Jeffs issued a joint statement Friday:

"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."

Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  Aker Solutions to Buy Brazilian C.S.E (Oct 21)
 -  Sea Trucks Group Secures Work Offshore... (Oct 21)
 -  Shell Divests Non-Core Oil, Gas Proper... (Oct 21)
 -  Petrofac Appoints New CFO (Oct 21)
 -  Wheatstone LNG Development Start-Up in... (Oct 20)

Most Popular Articles

From the Career Center
Jobs that may interest you
Manager Strategic Supply Chain Sourcing Job
Expertise: Project Controls|Purchasing|Supply Chain Management
Location: Denver, CO
Gas Storage Reservoir Engineer
Expertise: Petroleum Engineering
Location: Houston, TX
United States Odessa: Sr Field Engineer - Directional Drilling
Expertise: Directional Driller|Drilling Engineering
Location: Odessa, TX
search for more jobs

Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
Updated in last 24 hours