Max Petroleum (LON:MXP), the oil and gas exploration and production company, announced today that the recent drill at the Borkyldakty prospect, Kazakhstan, has indicated 38 meters of net oil over 5 reservoirs.
The Company revealed that the BOR-1 exploration well on Block E of the Borkyldakty prospect has been measured to 1,755 meters, with electric logs indicating 38 meters of net oil over five Triassic sandstone reservoirs at vertical depths between 1,375 and 1,536 meters. The Company announced that it would run production casing in the well, to be tested over the coming weeks.
Max Petroleum is an oil exploration and production oil operating exclusively in the Pre-Caspian Basin in Western Kazakhstan. Hydrocarbon production in the Basin began in 1911 and more than 100 shallow post-salt fields were discovered during the Soviet era, with a mean field size of 34 million barrels of recoverable oil. From the 31st March last year, the Company owned 100% interest in Blocks A & E (which includes the Borkyldakty prospect), covering an area of 13,500 squared kilometres.
Analysts at Fox Davies Capital commented:
"Excellent news for Max Petroleum. This result establishes proof of concept for the 12-well post-salt exploration programme and validates the extensive regional and prospect level work that was carried out by the company. The good homework has paid off today."
After setting casing around the BOR-1 well, the Sun drilling rig will be moved on to drill the KZN-1 well, on the North Kyzylzhar II East Block prospect in Block E, which the company expects to spud in early March 2010. Michael B. Young, President and CFO, commented:
"We are encouraged by the log results on Borkyldakty, the first of 12 post-salt exploration prospects we plan to drill over the next 15-18 months. By using a workover rig to complete BOR-1, we will be able to continue with our exploratory drilling programme while evaluating the well. Production test results will be released to the market as soon as they are available."
You can read more about Max Petroleum by clicking here. See below for a summary of our interview with management on the announcement.
