Shares in AIM-listed oil and gas firm Max Petroleum fell on Wednesday after it revealed that one of its appraisal wells in the Blocks A&E Licence proved not to be commercial.
The SAGW-2 well in the Sagiz West Field (Block E), Kazakhstan, reached a total depth of 1,451m "without encountering producible hydrocarbons", the firm said.
Nevertheless, the statement said that extensive shows of oil and gas were seen in the well throughout the Triassic sections, which indicates close proximity to the edge of the field.
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"The company is integrating the results of the well into the geophysical evaluation of the Field, and still plans to proceed to drill two additional appraisal wells beginning in January 2012. The SAGW-2 well will be cased for future use as an injection well during future field development," the firm said.
Meanwhile, the NUR-1 well is still being drilled (currently below 4,200m) and is on track to reach its total depth in April 2012 as expected. Production testing has begun at the SAGW-1 well.
Max Petroleum's President and Chief Financial Officer Michael Young commented: "While not commercial, the SAGW-2 well has provided additional insight into the shape of the eastern flank of the Field, and we remain confident that we can successfully appraise the Sagiz West discovery with the next two wells."
Shares were down 4.35% at 11p by 09:49.
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