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%.
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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%.
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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."
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