Max Petroleum strikes oil in Western Kazakhstan

Max Petroleum's shares rose Wednesday as the oil and gas company announced it encountered hydrocarbons in the Blocks A&E licence in Western Kazakhstan.

Max Petroleum's shares rose Wednesday as the oil and gas company announced it encountered hydrocarbons in the Blocks A&E licence in Western Kazakhstan.

The ZMA-E5 development well at the Zhana Makat field in the licence showed resources in the Jurassic sandstone reservoir after completing drilling to a depth of 871 metres.

The Zhanros ZJ-20 rig will now drill the ZMA-E6 development well in the Zhana Makat Field before moving to Block A to drill the Uytas North prospect, targeting resource potential of 11m barrels of oil (mmob) with a current geological chance of success of 24%.

At the Baichonas West Field, the company drilled its first appraisal well, BCHW-2. Initial results of logging and production testing of the BCHW-1 well indicated a commercial discovery with oil in place of approximately 16 mmbo from Jurassic reservoirs with an expected recovery factor of between 20% and 40%.

Following the completion of drilling at the BCHW-2, the group will move the ZJ-30 rig to the SAWG-4 appraisal well in the Sagiz West field.

Max is also tendering for third shallow drilling rig to conduct a 13-well appraisal programme for the Uytas Field.

Total production for the year to March 31st averaged 3,346 barrels of oil per day (bopd), an increase of approximately 19% from average production of 2,807 bopd in the prior year. It met the company's guidance for output between 3,200 and 3,600 during the period.

Production for the following fiscal year is expected to average between 4,500 and 6,000 bopd.

Michael Young, President and Chief Financial Officer, said: "It is positive to have two drilling rigs in operation with a third coming into play in the near future. The near-term drilling programme will allow us to further evaluate Baichonas West, Sagiz West and Uytas, as well as test the Uytas North prospect."

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021
Free 6 issue trial then continue to