Max Petroleum has entered into an agreement with Zhanros Drilling L.L.P., one of its drilling contractors, whereby Zhanros will fund up to $7 million of drilling and workover services in exchange for ordinary shares in the Company.

Under the terms of the Agreement, Zhanros will drill up to four shallow, post-salt, wells and fund related ancillary services in exchange for up to 90,322,581 ordinary shares in the Company (Shares) at a price of 5p per share in lieu of cash payment. Zhanros will be issued Shares on a monthly basis as payment for the drilling and workover services provided under existing service contracts between the Company's operating subsidiary, Samek International LLP, and Zhanros as services are completed.

Tags: Max Petroleum Plc