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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Max Petroleum Begins Drilling at Uytas Appraisal Well

- Max Petroleum Begins Drilling at Uytas Appraisal Well

Monday, August 15, 2011
Max Petroleum plc

Max Petroleum has commenced drilling the UTS-3 appraisal well on the Uytas prospect in Block A. The total depth of the well will be approximately 800 meters, targeting potential Cretaceous and Jurassic reservoirs.

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Max Petroleum Confirms Oil Pay at Uytas Field

- Max Petroleum Confirms Oil Pay at Uytas Field

Monday, August 08, 2011
Max Petroleum plc

Max Petroleum announced that the UTS-2 confirmation well in the Uytas Field in Kazakhstan has reached a total depth of 820 meters, with electric logs indicating 12 meters of net oil pay in the Cretaceous section at depths ranging from 108 to 148 meters, consisting of three sandstone reservoirs of excellent quality with porosities ranging from 25% to 34%. The Company also identified an additional six meters of net oil pay in Jurassic reservoirs at depths of approximately 350 meters. Significant oil shows were recorded continuously from depths of 36 meters to 150 meters, which appear to confirm the oil column seen in the original UTS-1 discovery well. Consequently, the Company extensively cored the UTS-2 well over the interval from 39 meters to 160 meters to allow further study of reservoir properties within this vertical column, with results from the coring analysis expected by early fourth quarter 2011. The core analysis will also be used to evaluate the potential of additional lower-quality reservoirs present in the Cretaceous in this interval that have not been included here as net pay. Furthermore, Cretaceous reservoirs above 80 meters that were not evaluated on electric logs due to their shallow depth may be tested in this well or subsequent wells pending the final core analysis.

The Company is currently running production casing in the well, which will be completed and tested using a workover rig after obtaining the requisite governmental approvals. Test results will be announced as soon as practicable. The Company plans to drill two additional appraisal wells in the field during August 2011 and acquire a high-fold 3D seismic survey over the Uytas structure in October 2011, in order to facilitate preparation of a long-term appraisal and development program for the field.

Robert B. Holland, Executive Co-Chairman, commented, "We are pleased with the successful confirmation of our Uytas discovery, with results in line or better than the original discovery well. We are conducting core analysis and additional technical studies to better define the potential of this discovery, and identify production techniques to maximize future oil recovery from the field given Uytas' unique shallow setting."

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Max Petroleum Discovers Oil in East Kyzylzhar

- Max Petroleum Discovers Oil in East Kyzylzhar

Monday, August 08, 2011
Max Petroleum plc

Max Petroleum announced that the KZIE-1 exploration well in the East Kyzylzhar I prospect has reached a total depth of 1,620 meters, with electric logs indicating 17 meters of net oil pay in two Jurassic sandstone reservoirs at depths ranging between 987 and 1,251 meters. Reservoir quality appears excellent with porosities ranging from 20% to 30%. The Company is running production casing in the well, which is expected to be completed and placed on test production in approximately 60-90 days.

Robert B. Holland, Executive Co-Chairman, commented, "We have now made five field discoveries since we renewed our post-salt exploration program in January 2010, with another three post-salt prospects to test this quarter alone. We are well positioned to execute on our exploration program regardless of macro market conditions and look forward to continue generating significant value for our shareholders in the very near-term."

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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 Starts Drilling at East Kyzylzhar Prospect

- Max Petroleum Starts Drilling at East Kyzylzhar Prospect

Tuesday, July 12, 2011
Max Petroleum plc

Max Petroleum has commenced drilling the KZIE-1 exploration well on the East Kyzylzhar I prospect in Block E. Total depth of the well will be approximately 1,500 meters, targeting potential Jurassic and Triassic reservoirs.

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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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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 Discovers Oil at Zhana Makat Field

- Max Petroleum Discovers Oil at Zhana Makat Field

Monday, May 16, 2011
Max Petroleum plc

Max Petroleum announced that the ZMA-ET2 appraisal well in the Zhana Makat Field has reached a total depth of 1,492 meters, with electric logs indicating 18 meters of net oil pay in three Triassic sandstone reservoirs at depths ranging between 1,283 and 1,358 meters. Reservoir quality appears excellent with porosities ranging from 18 to 26%. The Company is running production casing in the well. The Company will complete and test the ZMA-ET2 well using a workover rig after obtaining the requisite governmental approvals, and will announce test results as soon as practicable.

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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.

Max Petroleum Encounters Oil Pay at Zhana Makat Well

Max Petroleum Encounters Oil Pay at Zhana Makat Well

Monday, April 11, 2011
Max Petroleum plc

Max Petroleum announced that the ZMA-ET1 appraisal well in the Zhana Makat Field has reached a total depth of 1,472 meters, with electric logs indicating 22 meters of net oil pay in three Triassic sandstone reservoirs at depths ranging between 1,282 and 1,410 meters.

Reservoir quality appears excellent with porosities ranging from 18 to 26%. These reservoirs were the primary objective of this well, which appears to have successfully extended Triassic production and reserves into the southern end of the Field.

The Company is running production casing in the well, after which the Sun ZJ-30 drilling rig will move on to drill the ZMA-ET2 appraisal well further to the south of the ZMA-ET1 well, attempting to further extend Triassic production and reserves in Zhana Makat. The Company will complete and test the ZMA-ET1 well using a workover rig over the next several weeks and will announce production test results as soon as practicable.

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."