New Kazakhstan discovery for Max Petroleum

Sep 12. Interactive Investor

By Sarah Modlock

New Kazakhstan discovery for Max PetroleumMax Petroleum’s (MXP) SAGW-1 exploration well in the Sagiz West prospect in Kazakhstan has reached a depth of 1,406 metres, with electric logs indicating 27 metres of net pay including 21 metres of oil and six metres of gas pay.

The company said that reservoir quality is very good, with porosities ranging from 18% to 25%.

“Based on current geophysical mapping, together with electric logs and pressure data recorded in the well, the company estimates oil in place in the Sagiz West field at 66 million barrels with expected recovery factors ranging between 20 to 30%,” it said in a statement.

“This is an excellent result for the company and our shareholders. Sagiz West is a large, conventional post-salt discovery that validates our focus on the Triassic rim play type that makes up the majority of our forward shallow prospect inventory,” said Max’s president Michael Young.

He added: “We have now drilled eight successful wells since March 2011, with three discoveries, bringing our overall success rate with our shallow exploration programme to 50% since January 2010.”

Max is running production casing in the well, which is expected to be completed and placed on test production upon receipt of the requisite government approvals. A confirmation well will be drilled in early 2012. Two further appraisal wells are also being planned for next year.

The company also announced it has started drilling the ASK-2 exploration well on the Asanketken prospect on block E.

The well will have a total depth of 3,300 metres and will target Jurassic and Triassic reservoirs with estimated unrisked mean resource potential of 50 million barrels of oil.