Max says Kazakhstan well finds oil

Oct 19. Reuters

Max says Kazakhstan well finds oilOil explorer Max Petroleum said a well in Kazakhstan had found a zone of oil on its way down to reach its main exploration targets, sending its shares soaring.

Max said on Tuesday that testing equipment indicated that the well, UTS-1, on the Uytas prospect in Western Kazakhstan found 16 metres of oil at shallower depths and that this oil column could potentially stretch for 86 metres.

Shares in the company rose as much as 52 percent to 16.75 pence, making the company the biggest gainer in London , and valuing it at 75 million pounds.

“The initial results of Uytas are very encouraging and could prove to be significant given the apparent size of the oil column,” said Executive Co-Chairman Robert Holland, adding he believed the discovery was potentially commercial.

The company said the well would drill ahead from the current intermediate depth of 300 metres to explore deeper targets at around 900 metres before returning to the shallower zones to test the find.