Max Petroleum (BUY, £0.50) (LON:MXP, 20p, ? (2.44%)) announced the discovery of the Borkyldakty Field in Block E after completing initial production tests in the BOR-1 exploration well. The Company initiated testing of the BOR-1 exploration well earlier this month, completing the well in the lower-most of five Triassic reservoirs, through perforations from 1523-1530.5m in depth. The well commenced flowing oil naturally at a nominal rate, before being placed on a pump. The well is currently producing high quality, 36° API crude oil, at a stable commercial rate of 200bopd, with no water and a negligible amount of gas. Testing of additional reservoirs in this well bore will be considered after an extended production test on this interval has been completed. Additionally, two confirmation well locations have been identified and the Company has issued a tender for a second shallow drilling rig to drill future appraisal and development wells within the Borkyldakty Field.
Max Petroleum also announced that it has completed drilling the KZN-1 exploration well on the North Kyzylzhar II East Block prospect, reaching a total depth of 1,408m. Oil shows were observed in several Triassic Sandstone intervals, but open-hole electric logs and pressure tests indicate only residual oil rather than a potential economic accumulation of hydrocarbons. The well will be plugged and abandoned, after which the Sun ZJ-30 drilling rig will move on to drill the KZN-2 well on the North Kyzylzhar ll West Block prospect, the third of twelve post-salt exploration prospects the Company plans to test in the Blocks A&E license area.
Comment: The tests results of Borkyldakty are excellent news for Max Petroleum. The Company needs now to appraise the discovery to ascertain reserves numbers. The KZN-1 results is not out of line with our expectation as we have risked the post-salt prospects at 38%, meaning that we expect a rate of success of 4-5 out of the 12 prospects targeted during the current drilling campaign. The Company will now move swiftly to the next prospect and is also commissioning a second shallow rig to carry out the appraisal work.
Afren (LON:AFR, 96.2p, ? (0.73%)) announced the appointment of the Group Finance Director, Mr Darra Comyn to the Afren Board of Directors. Darra Comyn joins the Board with immediate effect and will be responsible for leading…
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