Events at Max Petroleum (AIM:MXP) appeared to take another turn for the worse this morning after the company announced that it had suspended Chief Executive Officer Steve Kappelle and Cheif Operating Officer Ole Udsen. The company said both directors were being investigated for potential breaches of their employment contracts involving undisclosed receipt of share options. The company added, rather worryingly, that the investigation "will not be limited to these matters". Shares in Max Petroleum were suspended pending a further announcement.
Today's update follows a massive drop in investor confidence in Max Petroleum, which was forced to issue a statement on the 17th August denying any knowledge of why its share price had suddenly collapsed 100 pence from a peak of 215 pence.
Interestingly, Kappelle is also Honorary Australian Consul for the Central Asian republic of Kazakhstan.
MXP has four oil and gas exploration blocks in the former Soviet Union state of Kazakhstan, and is a favourite amongst AIM private investors speculating in the oil and gas junior sector.