Max Petroleum to abandon KZI-1 well; shares fall
June 15 (Reuters) – Kazakhstan-focused oil and gas company Max Petroleum Plc (MXP.L: Quote) said on Tuesday it would plug and abandon its KZI-1 well, as it did not find any hydrocarbons in the area, sending its shares down 18 percent.
In October last year, the company was hoping to produce multiple commercial discoveries from its portfolio of 12 matured drillable post-salt prospects.
“The programme has about 40 percent chance of success, so they need to have four to five discoveries out of twelve wells to fulfil that,” analyst Lionel Therond of Fox-Davies Capital said by phone.
The KZI-1 exploration well, located on the Kyzylzhar I prospect in block E, had reached a total depth of 1,192 meters, the company said.
Max Petroleum added that it would start drilling the ZMA-A15 development well in the Zhana Makat Field, followed by the KAW-1 and UTS-1 in block E and block A respectively.
In the Borkyldakty Field, production tests of the lower three of five Triassic reservoirs in the BOR-1 discovery well have all produced oil at commercial rates ranging from 75 to 200 barrels of oil per day, it said.
The company, which is conducting a 3D seismic survey in the Triassic reservoirs and an adjacent structure to determine its drillable prospects, said it expected to complete the survey in the fourth quarter of 2010.
Shares of Max Petroleum, which fell as much as 18 percent, were down 9 percent at 15 pence at 0835 GMT on Tuesday on the London Stock Exchange. (Reporting by Juhi Arora in Bangalore; Editing by Don Sebastian)