Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

- Max Petroleum Begins Drilling Kazakh UTS-4 Appraisal

Monday, September 05, 2011
Max Petroleum plc


Max Petroleum has commenced drilling the UTS-4 appraisal well on the Uytas prospect in Block A, Kazakhstan. The total depth of the well will be approximately 800 meters, targeting potential Cretaceous and Jurassic reservoirs.


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Max Petroleum Updates Activities in Kazakh Blocks

- Max Petroleum Updates Activities in Kazakh Blocks

Wednesday, August 24, 2011
Max Petroleum plc

Max Petroleum announced an operational update of its activities in the Blocks A&E License area in Kazakhstan.

Drilling Commences at Sagiz West Prospect

Drilling has commenced at the SAGW-1 exploration well on the Sagiz West prospect in Block E, which has estimated unrisked mean resource potential of 26 million barrels of oil ("mmbo") in a four-way, Triassic rim structure. Total depth of the well will be approximately 1,600 meters.

New Drilling Contract for Additional Shallow Rig

The Company has executed a drilling contract with PM Lucas for a ZJ-50 rig capable of drilling to 5,000 meters, to drill the ASK-2 exploration well in the Asanketken Field in Block E. The rig is on location and is expected to commence drilling operations before 31 August 2011. The ASK-2 well is designed to test the field's deep Triassic potential, as well as further evaluate potential reservoirs in the shallower Jurassic section found to be productive in the ASK-1 discovery well.

Status of Pre-salt Drilling on Emba B Prospect

The Company expects to commence drilling operations for the NUR-1 pre-salt exploration well in the Emba B Prospect on Block E in October 2011, based on the Company's latest discussions with the drilling contractor, Saipem. The deep rig is currently completing a well for another operator and is expected to begin mobilization to NUR-1 location by the end of the month.

Expanded Post-salt Prospect Inventory

The Company has matured two additional prospects into the post-salt inventory, including the Uytas North and Karasai South prospects, both of which are four-way, Triassic rim prospects on Block A. Uytas North has unrisked mean resource potential of 11 mmbo with a 38% geological chance of success ("COS"), while Karasai South has unrisked mean resource potential of 12 mmbo and a 34% COS.

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RBG Appoints President at Kazakh Business Unit

- RBG Appoints President at Kazakh Business Unit

Friday, August 19, 2011
RBG

RBG has appointed Ian Henderson as president of its Kazakhstan business unit. Mr. Henderson will operate from RBG's base in Aktau City, Kazakhstan.

Mr. Henderson joined RBG in March 2011 as commercial manager and has more than 20 years experience in the oil and gas industry. He has worked in a wide range of senior project, contract and commercial positions for companies such as Statoil, FosterWheeler and Halliburton, delivering major projects across North Africa, the Middle East and North Sea.

Mike Kochalski, international director, RBG, said, "I am very pleased to welcome Ian to our team. His experience, industry knowledge and technical expertise makes him a great asset to the company. Kazakhstan is one of our strongest growth areas and I am confident Ian's appointment will see the area continue to flourish.

"We are experiencing high demand for our integrated services across the region and Ian will play a key role in ensuring we capitalize on this, whilst continuing to deliver the excellent standards in safety, quality and service delivery our clients expect."

Mr. Henderson, said, "RBG is going through an exciting period of growth and change which I'm delighted to be part of. I look forward to working with our expert in-country team to growing our client-base and service offering across the region. The great work carried out in previous years has given us an excellent foundation to accelerate our growth and expand our operations."

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Jupiter Spuds Kazakh Well

- Jupiter Spuds Kazakh Well

Monday, August 01, 2011
Jupiter Energy Ltd.

Jupiter Energy reported that the J-51 Exploration Well, located in the Mangistau basin in south-west Kazakhstan, spudded on July 30, 2011.

The surface location for J-51 is 2 km South West from J-50 and 1.7 km North West from J-52. J-51 is scheduled to take ~60 days to reach target depth of approximately 3200 meters and has been designed to evaluate the prospectivity of the primary Triassic and secondary Jurassic targets within the structure known as Akkar East.

The casing design is configured to allow the well to be used as a future production well.

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Caspian Energy, Partners Spud Kazakh Well

- Caspian Energy, Partners Spud Kazakh Well

Thursday, July 21, 2011
Caspian Energy Inc.

Caspian Energy and partners announced spudding of an exploration well between the two producing wells in the East Zhagabulak field of Kazakhstan.

The new well is the first step in a plan aimed at expanding the area held by the partners under a 25-year production licence, said Caspian Chairman and CEO William Ramsay. Ramsay said the well is one of six drilling targets approved July 8 by the Central Development Committee (CDC) of the Republic of Kazakhstan.

Well EZ #308 spud on July 16 and will take about 100 days to complete to about 4,700 meters, Ramsay said. It is targeting the same carboniferous structure of the Bashkirian layer from which the two earlier successful wells are currently producing about 400 barrels of oil per day.

All wells will be drilled under the direction of Aral Petroleum Capital, the operating entity in Kazakhstan, which is owned 40 per cent by Calgary-based Caspian and 60 per cent by Asia Sixth Energy of China.

Second target

At the same time that EZ #308 began drilling, a second rig was en route to a location southwest of the East Zhagabulak field, an area officially designated Zhagabulak II and III and locally known as Sakramabas. This rig is expected to commence drilling the CDC-approved Sakramabas #316 well before the end of July.

"Our seismic analysis indicates the potential for a high-porosity carbonate reef at the Sakramabas #316 site," Ramsay said. Neighbors have drilled successful wells on surrounding leases and our 3-D seismic indicates our well is on the same trend line as those producing wells and we have more advantageous geological conditions for oil and gas accumulation than our neighbors."

"It's a new direction for us and a potential new resource base, arising out of the success of our neighbors and a consequent re-examination of our seismic data.

"This is a deep well, targeting the same well know carboniferous structure of the Bashkirian layer at some 4,500 meters," he said. "Again we expect drilling to take about 100 days to reach total depth, with testing to follow.

"By drilling two separate exploration plays, we're offsetting risk and enhancing potential," Ramsay said. "We have good confidence in both prospects, but they are exploration wells and they entail some level of risk."

Next steps

Next steps in Aral's drilling plans will be governed by results at Sakramabas, Ramsay said. Success there may indicate the presence of a number of separate new oil and gas formations, from East Zhagabulak to Sakramabas. In the event of a good result at Sakramabas #316, the partners will complete the EZ #308 well and move that rig to a location northeast of Sakramabas, where it will test for oil between Sakramabas and East Zhagabulak. An additional drilling rig would then be contracted in October to pursue targets within East Zhagabulak.

Obtaining new geological data could prove regional distribution of oil and gas productive layers through all central parts of the Zhagabulak field and will enable Aral to apply for a production license on a greatly expanded area, Ramsay said.

"We would cross over into the new year with three rigs working full time to prove up the potential of the Zhagabulak field," he said.

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Max Petroleum to Boost Daily Production at Kazakh Field

- Max Petroleum to Boost Daily Production at Kazakh Field

Wednesday, July 20, 2011
Max Petroleum plc

Max Petroleum provided a production update for the Zhana Makat Field.

The ZMA-ET1 well has been connected to temporary production facilities for long-term production testing and is currently producing at a stable rate of approximately 650 bopd barrels of oil per day ("bopd") from perforations in the T4 Triassic reservoir at depths from 1,282 to 1,288 meters. The current production rate has been restricted to 650 bopd while the Company monitors the level of gas production from the well.

The Company has also perforated the ZMA-ET2 appraisal well, successfully flowing 48 degree API oil at an equivalent rate of approximately 450 bopd from perforations in the T5 Triassic reservoir from depths of 1,315 to 1,321 meters during a limited flow-back period. The well will be connected to temporary production facilities and brought onto long-term production testing in August 2011. The Company expects the well to produce at a stabilized rate of approximately 500 bopd.

Michael B. Young, President and CFO, commented, "We are on track to increase aggregate daily production during the current quarter to approximately 3,500 bopd, which is a significant milestone for the Company."

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Max Petroleum Begins Testing Kazakh Appraisal

- Max Petroleum Begins Testing Kazakh Appraisal

Monday, July 11, 2011
Max Petroleum plc

Max Petroleum has begun testing of the ZMA-ET1 appraisal well in the Zhana Makat Field, successfully flowing 47 degree API oil at an equivalent rate of approximately 1,200 barrels of oil per day ("bopd") from perforations in a Triassic reservoir from depths of 1,282 to 1,288 meters during a five hour flow-back period. The well, located in Kazakhstan, will be connected to temporary production facilities later this week and brought onto production. The Company expects the well to produce at a stabilized rate between 500 and 1,000 bopd.

Completion and testing of the ZMA-ET2 well is expected to begin shortly, with production beginning in the next few weeks. Both wells will initially be placed on test production pending confirmation of reserves necessary for future inclusion in Zhana Makat's full field development program.

Michael B. Young, President and CFO, commented, "This is the best test rate we have seen in any well we have drilled to date and further confirmation of the potential of the Triassic reservoirs on Blocks A&E. We will continue to increase production this month as we bring on the ZMA-ET2 and BOR-3 wells, followed by the ASK-1 Jurassic well in August. We are also looking forward to drilling other Triassic prospects in our portfolio this quarter, including Sagiz West, Zhalgyz South, and Asanketken."

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Max Petroleum Updates Kazakh Ops

- Max Petroleum Updates Kazakh Ops

Monday, July 04, 2011
Max Petroleum plc

Max Petroleum announced an update of its operations in the Blocks A&E license area in the Republic of Kazakhstan.

Extension of Trial Production Project for Zhana Makat Field

The Kazakh government has approved an extension of the trial production project for the Zhana Makat field until 15 December 2011, while the Company seeks final regulatory approval to convert Zhana Makat to full field development ("FFD") status under its Blocks A&E exploration and production contract (the "Contract"). FFD approval will allow the Company to develop and produce the field for up to 25 years, as well as grant the Company a right to sell 80% of its crude oil production on the export market under the terms of the Contract.

Sales and Production Update

Following correspondence and recent discussions with local regulatory authorities, Max Petroleum will sell 100% of its crude oil production on the domestic market pending FFD approval, which is projected to be in place during the fourth quarter of 2011. Current oil sales into the domestic market are generating after-tax net proceeds that are approximately $15-$17 per barrel lower than comparable export sales. The Company does not anticipate any material adverse impact to its financial condition or its ability to implement its ongoing post-salt and pre-salt drilling programs as a result of selling domestically during this period.

The Company is currently producing approximately 2,200 barrels of oil per day ("bopd"), generating approximately $3.5 million in net proceeds per month from domestic oil sales. The Company expects daily production to increase to more than 3,000 bopd during the third quarter of 2011 as four additional wells are brought onto production, including the ZMA-ET1 and ZMA-ET2 wells recently drilled in Zhana Makat, the BOR-3 well in the Borkyldakty Field, and the ASK-1 well in the Asanketken Field.

Drilling Update

The BOR-3 appraisal well in the Borkyldakty Field has reached a total depth of 1,688 meters, with electric logs indicating 28 meters of net oil pay in five Triassic sandstone reservoirs at depths ranging between 1,366 and 1,556 meters. Reservoir quality appears excellent with porosities ranging from 18% to 25%. The Company is running production casing in the well, which will be completed using a workover rig and placed on production in July 2011 under the terms of the trial production project ("TPP") for the Borkyldakty Field.

Following BOR-3, the rig will move on to drill the KZIE-1 exploration well on the East Kyzylzhar 1 prospect followed by the SAG-1 exploration well on the Sagiz West prospect, both of which are located in Block E. A second shallow rig is on location at the Uytas Field and is expected to begin drilling the first of three appraisal wells in early July 2011. When the rig has finished drilling all three Uytas appraisal wells it will move on to drill the ZLGS-1 exploration well on the Zhalgyz South prospect in Block A.

The Company has tendered for a third shallow drilling rig to drill the ASK-2 well in the Asanketken Field to accelerate the drilling of Max Petroleum's shallow exploration, appraisal and development program. The Company expects to spud the ASK-2 well in mid-August 2011. Furthermore, the Company is on plan to begin drilling the pre-salt NUR-1 well in the Emba B prospect on Block E in the latter half of the third quarter of 2011.

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Max Petroleum Spuds Kazakh Appraisal Well

- Max Petroleum Spuds Kazakh Appraisal Well

Monday, June 13, 2011
Max Petroleum plc

Max Petroleum has commenced drilling the BOR-3 appraisal well in the Borkyldakty Field. The total depth of the well will be approximately 1,800 meters, targeting Triassic reservoirs.

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ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

- ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

Wednesday, June 08, 2011
Dow Jones Newswires
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) and GAIL are working on a plan to buy at least a part of ExxonMobil's stake in Kazakhstan's Kashagan oil field, in yet another push by the South Asian country to secure energy assets for its expanding economy.

"We are interested. We are working on it," GAIL Chairman B.C. Tripathi told Dow Jones Newswires. He didn't say how much of Exxon's stake in Kashagan were the two state-run companies looking to acquire.

"The discussions have been going on but no decision has been made yet," said a senior ONGC executive, who didn't wish to be named.

ONGC is India's flagship oil explorer while GAIL is the country's largest gas distributor by market share.

Earlier Wednesday, the Hindustan Times newspaper reported that ONGC Videsh Ltd., ONGC's overseas investment arm, and GAIL are jointly planning to buy an 8.4% stake in the Kashagan oil field from Exxon Mobil for about $5 billion.

The consortium has submitted a non-binding bid to Exxon to buy about half of its 16.8% stake in the oil field, the report said, citing documents related to the deal.

Exxon Mobil spokesman Alan Jeffers told Dow Jones Newswires the company doesn't comment "on rumors, speculation or media reports."

"Kazakhstan is an important element of the Exxon Mobil global portfolio and we have a long-term commitment to the country," Jeffers said.

India, which meets nearly four-fifths of its crude oil requirement through imports, has been eying energy assets in Kazakhstan. The Central Asian nation is expected to become one of the world's top 10 oil producers by 2025 and one of the top three contributors to production growth outside the Organization of Petroleum Exporting Countries.

In April, Indian Prime Minister Manmohan Singh and Kazakhstan President Nursultan Nazarbayev underlined the importance of energy cooperation between the two countries.

India has lagged its rival China in the race for energy assets in Kazakhstan, which is home to some of China's largest investments.

China National Petroleum Corp. and Kazakhstan's national oil and gas company, KazMunaiGas, signed a new energy cooperation agreement in February. CNPC has said that its oil and gas production in Kazakhstan reached a record 30 million metric tons of oil equivalent in 2010 and that it plans to double the transmission capacity of the crude oil pipeline linking the two countries to 20 million metric tons a year, or 401,600 barrels a day, by 2013.

"The decision making in Indian state-run companies on acquisitions is very slow as they have to seek too many approvals and there are layers of sanctions required," said Jagannadham Thunuguntla, equity head of brokerage SMC Capitals Ltd. "The multi-billion-dollar deals also need parliament approval, which further slows the speed. India needs to move fast to seal such deals."

Kazakhstan expects its Kashagan oil field, which lies in the northern part of the Caspian Sea, to begin production by the end of 2012. Production is expected to reach 1.0 million tons in the second phase of development and 1.5 million tons in the third phase.

KazMunaiGas, Royal Dutch Shell PLC, ExxonMobil, Total SA and ENI SpA each own 16.81% in Kashagan while ConocoPhillips and Japan's Inpex Corp. hold 8.4% and 7.56%, respectively.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Condor Commences Drilling at Kazakh Well

- Condor Commences Drilling at Kazakh Well

Tuesday, June 07, 2011
Condor Petroleum Inc.

Condor announced that Kiyaktysay North-3 ("KN-3") drilling operations have commenced on the Zharkamys West 1 Territory in Kazakhstan. The KN-3 well location targets the same Triassic geologic play that resulted in the recent Shoba discoveries. The KN-3 has a planned total depth of 1000 meters and is located 17 km southeast of Shoba.

Condor has also initiated field acquisition of a 1,280 sq km 3D seismic program in the southeast portion of Zharkamys, designed to image shallow Triassic plays as well as deeper Sub-Canopy and Pre-Salt plays. It is planned to have this program completed in Q4 2011, at which point 90% of Zharkamys will have coverage with high resolution 3D seismic data.

Don Streu, Condor's President and CEO commented, "Condor is continuing with our strategy of using 3D seismic to both explore and appraise multiple play types on the Territory. Condor believes implementation of this approach is one means to mitigate exploration risk while providing data necessary to progress commercial development activities."

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Max Petroleum IDs Oil Pay at Kazakh Well

- Max Petroleum IDs Oil Pay at Kazakh Well

Monday, June 06, 2011
Max Petroleum plc

Max Petroleum announced an operational update of its activities in the Blocks A&E Licence area in the Republic of Kazakhstan.

Discovery in Narmundanak South

The NARS-1 exploration well on the Narmundanak South prospect in Block E has reached total depth of 1,589 metres with electric logs indicating 4 meters of net oil pay at depths from 1,280 to 1,290 meters in the Triassic Formation with porosities ranging from 18% to 25%. A fluid sample taken from a depth of 1,283 meters yielded 32 degree API oil. The Company is running production casing in the well and expects to test NARS-1 for commercial viability in the next 60-90 days upon receipt of the requisite governmental approvals.

Borkyldakty Field Placed on Trial Production

The Borkyldakty Field has been placed on production after receiving final approval of the trial production project ("TPP") from the Kazakhstan regulatory authorities. The TPP, valid through March 2013, allows the Company to produce the field and drill additional exploration and appraisal wells in order to gather additional data necessary to prepare a full field development plan. The Company has returned the BOR-1 discovery well to production and is planning to drill the BOR-3 development well in June 2011 using the IDECO rig after it has finished the NARS-1 discovery well.

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Max Petroleum, Saipem Enter Kazakh Drilling Contract

Max Petroleum, Saipem Enter Kazakh Drilling Contract

Tuesday, April 26, 2011

Max Petroleum plc

Max Petroleum has entered into a contract with Saipem, a subsidiary of Eni, S.p.A., for a National 1625 DE onshore drilling rig for its deep, pre-salt exploration program. The contract secures the use of the 3,000 hp rig to drill a minimum of two deep wells in the Company's Blocks A&E license area.

The Company plans to commence drilling the NUR-1 well on the Emba B prospect in Block E during August 2011, targeting unrisked mean resource potential of 467 million barrels of oil equivalent ("mmboe") distributed over a probable range (P90 to P10) of 170 million to 817 million mmboe with a 29% geological chance of success.

Petrobras CEO: Ready to Enter Kazakh Market

Petrobras CEO: Ready to Enter Kazakh Market

Thursday, April 14, 2011
Asia Pulse Pte. Ltd.

Petrobras, the Brazilian energy giant, is hoping to enter Kazakhstan's oil sector and is currently in cooperation talks with the state-owned oil firm, KazMunayGas, to do so.

"Kazakhstan is the largest crude oil producer of the world. We have had some business meetings with the KazMunayGas executives to discuss possible cooperation between the companies," CEO of Brazil's Petrobras Jose Sergio Gabrieli told Kazinform agency.

According to him, Petrobras is ready to work together with Kazakh oil and gas companies.

"Unfortunately, we have no business ties with Kazakhstan to date, but we hope to tune up cooperation soon," he said.

ONGC to Buy 25% Stake in Kazakh Exploration Block

ONGC to Buy 25% Stake in Kazakh Exploration Block

Wednesday, April 13, 2011
Dow Jones Newswires
by Rakesh Sharma

Oil & Natural Gas Corp. will sign an agreement Saturday to purchase a 25% stake in the Satpayev exploration block in Kazakhstan, the chairman of India's biggest explorer said Wednesday.

"The government [of India] has approved a total investment plan of $400 million. This includes a signature bonus of $13 million and $80 million as a fee for taking the stake in the block," A. K. Hazarika told Dow Jones Newswires.

"The rest will be spent on exploration activities."

The deal will mark another success by ONGC in its attempts to buy oil and gas assets overseas to secure energy supplies for the world's fastest-growing major economy after China. The state-run company, which has been witnessing a decline in production at its aging fields in India, has in the past missed out on several overseas oil and gas asset acquisitions, especially to cash-rich Chinese companies in western Africa.

Kazakhstan's Satpayev exploration block is located in a hydrocarbon-rich region of the North Caspian Sea, off the country's south-western coast.

KazMunaiGas, Kazakhstan's national oil company, will hold the remaining 75% stake in the block.

The initial agreement for the stake sale was signed in 2009, but the governments haven't so far disclosed the valuation for the stake transfer.

ONGC had originally sought the 25% stake in association with Lakshmi Niwas Mittal's Mittal Investments Sarl, but the billionaire, who owns a steel mill in the central Asian nation, pulled out of the venture in November 2009, leaving ONGC to pursue the deal on its own.

ONGC will likely purchase the stake in the Satpayev block via its overseas investment unit, ONGC Videsh Ltd.

Hazarika said the agreement will be signed during Indian Prime Minister Manmohan Singh's visit to Kazakhstan for bilateral meetings. Singh will visit Kazakhstan Friday and Saturday.

The Indian government is pushing state-run explorers to expedite acquisitions of overseas exploration and producing assets as a possible hedge against fluctuations in global crude oil prices and save on precious foreign exchange. The South Asian country imports four-fifths of its crude oil requirements.

Earlier Wednesday, the Hindustan Times reported that a peak output of 287,000 barrels per day is envisaged from the 256 million tons of reserves in the Satpayev field.

Hazarika declined give details on the reserves. "That has to be seen," he said.

Max Petroleum Spies Oil Pay at Kazakh Prospect

Max Petroleum Spies Oil Pay at Kazakh Prospect

Friday, April 01, 2011
Max Petroleum plc

Max Petroleum updated its activities in the Blocks A&E License area in the Republic of Kazakhstan.

Kazakstan

Preliminary Drilling Results at Asanketken

The ASK-1 exploration well on the Asanketken prospect in Block E has reached an intermediate depth of 2,000 meters with electric logs indicating 24 meters of net oil pay at depths from 1,230 to 1,302 meters in the Jurassic Formation. Reservoir quality is excellent with porosities ranging from 17% to 33%. A fluid sample taken from a depth of 1,278 meters yielded 45 degree API oil. Current mapping and pressure data suggest that reserves in this accumulation are limited by the proximity of a trapping fault, but the Jurassic reservoirs, a secondary objective in the well, are expected to be commercially viable.

The Company will run casing over this portion of the well as planned and continue to drill ahead to a total depth of approximately 3,300 meters to evaluate the primary exploration targets in the lower Triassic section.

Procurement of two additional drilling rigs

The Company has entered into a two-year contract with PM Lucas Enterprises Limited for an IDECO 8055 Rambler rig capable of drilling to 3,200 meters (the "IDECO Rig").

Due to recent weather conditions limiting access to the Uytas Field, the IDECO rig is currently mobilizing to drill the NARS-1 exploration well on the Narmundanak South prospect in Block E, which is expected to spud on or around 20 April 2011.

The Company intends to drill three confirmation wells at Uytas with the IDECO Rig subsequent to drilling the NARS-1 well.

The Company has also awarded a tender to Saipem, a subsidiary of Eni, S.p.A, for a rig to drill its deep pre-salt exploration program and expects to execute a drilling contract shortly.

The Company plans to commence drilling the first pre-salt well, NUR-1, in Block E during August 2011, targeting unrisked mean resource potential of 467 million barrels of oil equivalent (mmboe) distributed over a probable range (P90 to P10) of 170 million to 817 million mmboe with a 29% geological chance of success.

Trial Production at Borkyldakty

The Central Committee for Exploration and Development (CCED) has recommended the trial production project for the Borkyldakty Field to the Committee of Geology for final approval.

This final approval and the issuance of required gas flaring and emissions permits are expected in the next 30-45 days. The Company intends to drill at least one appraisal well at Borkyldakty during the first half of 2011 using the ZJ-30 rig that is currently drilling the first of two Triassic appraisal wells in the Zhana Makat Field.

Robert Holland, Executive Co-Chairman, commented, "We are encouraged to see high quality oil pay in the Jurassic section in Asanketken, which lowers the risk of charge for the well's primary objectives in the lower Triassic. Adding additional rigs, including the deep rig for our pre-salt exploration program, is a key step in our plans to significantly ramp up our exploration, appraisal and development activity in 2011.

We also expect a substantial increase in production and revenues in the near-term as we bring on additional appraisal and development wells in Zhana Makat, Borkyldakty and Uytas."