20th Jan 2014 08:21
LONDON (Alliance News) - Max Petroleum PLC Monday said drilling at its SAGW-11 appraisal well has failed to encounter sufficient levels of hydrocarbons.
The oil and gas production firm focused on Kazakhstan said the site was drilled to a total depth of 1,429 metres without finding commercial levels of oil and will now be plugged and abandoned.
At the end of December, the company announced that it had found a seven-metre space of very good quality net oil pay at the SAGW-8 appraisal well at the site.
However, the December announcement came as the firm reported its results for the half-year, including lower revenue, production levels and widened losses from a year before. Still, the firm said that its first-half results showed a marked improvement on the last six months of the previous financial year.
The company said Monday the rig for the SAGW-11 site will now move to drill the SAGW-10 well, one of three remaining in the company's current appraisal programme at the site.
At the open Monday, Max Petroleum shares were down 5.4% at 2.20 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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