Max Petroleum lifted by development approval for Zhana Makat field in Kazakhstan
Mar 16. Proactive Investors UK
By Andre Lamberti
Max Petroleum (LON:MXP) shares rose in early trade after the group announced it has received Kazakh government approval to convert the Zhana Makat field to full field development (FFD) status with immediate effect.
At 9.11 am, the stock was up 6.9 per cent at 13.625 pence.
The Kazakhstan-focused oil and gas explorer said the FFD approval will allow it to develop, and produce from, the field for up to a further 25 years, as well as grant the right to sell 80 per cent of crude oil production from Zhana Makat on the export market under the terms of its Blocks A&E exploration and production contract.
Max said current export oil sales are generating net proceeds per barrel that are approximately US$22-US$25 higher than comparable domestic sales. Zhana Makat is currently producing approximately 2,100 barrels of oil per day.
Chief executive Michael Young said: “Zhana Makat was Max Petroleum’s first discovery in Kazakhstan and is now the first of our six discoveries to move from trial production into full field development. We expect to begin selling Zhana Makat crude on the export market in April, which will provide a healthy boost to our monthly operating cash flow given current world oil prices.”
Max Petroleum is an independent oil and gas exploration and production company focused on Kazakhstan. The Company is a public limited company incorporated in the United Kingdom and listed on AIM. The Company holds a 100% interest in Blocks A&E Licence area covering over 12,455 km2 in the highly prolific Pre-Caspian Basin in Western Kazakhstan. The Pre-Caspian Basin has produced some of the world’s largest oil and gas discoveries, including the super-giant Tengiz, Kashagan, Karachaganak and Astrakhan fields, which range in size from seven to 20 billion barrels of oil equivalent in recoverable reserves.