Max Petroleum to sell shares to fund Kazakh exploration

February 02. Central Asia Newswire

Max Petroleum to sell shares to fund Kazakh explorationKazakhstan-focused oil and gas company Max Petroleum announced Wednesday it will sell shares to make $75 million it needs for ongoing exploration.

J.P. Morgan Securities and Macquarie Capital will place the shares, on behalf of Max, to fund exploration activities at two of its blocks in Western Kazakhstan, according to a report by the Reuters news agency on Wednesday.

The UK-listed company fully owns four lucrative oil and gas blocks covering an area of 5,200 square miles in Western Kazakhstan.

The report did not specify towards which blocks the revenues would be used.

The British oil explorer said it would raise further funding by seeking to extend the maturity of its convertible bonds and credit facility, the news agency reported.

In an operational update announced earlier this week, Max Petroleum said it was preparing to perform a production test at its UTS-1 well located within the Uytas prospect in Blocks A&E license area.

“We are pleased with the results of the Jurassic test and anticipate even better results when we drill further updip on the structure,” Max Petroleum Executive Co-Chairman Robert B Holland III said in a Monday press release. “We believe this test, combined with the large volume of oil in place in the Cretaceous, confirms Uytas as a significant post-salt discovery.”

The company has exploration and production rights to onshore Blocks A&E license area, which are located around 60 miles north and northeast of the supergiant Tengiz oilfield and are within the same Pre-Caspian Basin that links the other supergiants Kashagan, Karachaganak and Astrakhan.