22nd May 2006 15:04
Max Petroleum PLC22 May 2006 Max Petroleum Plc ("Max Petroleum" or "the Company") Shallow Drilling Programme to Commence Max Petroleum (AIM: MXP) is pleased to advise that the first 4 shallow drillinglocations in the Company's Block E licence, Western Kazakhstan have beenidentified. The choice of locations has been made on the basis of reprocessedSoviet and new 2005 2D seismic, combined with additional 3D seismic datareceived from KazMunaiGas, the state owned oil and gas company, as part of itsCooperation Agreement with Max Petroleum. All four locations in Block E havebeen successfully inspected and confirmed suitable for drilling operations. The indicative 'Stock Tank Oil Initially In Place' (STOIIP) for the first 4targets is encouraging and will be verified by Max Petroleum's independentCompetent Person, McDaniel & Associates, as soon as Max's in-house work has beenfinalised. A further 6 drilling locations in Block E are in the process of beingselected, with their locations partially dependent on the drilling results ofthe first 4 wells. A contract has been signed with local contractor Karakum Drilling LLP for theprovision of a fully equipped Cardwell KM-200 mobile drilling rig, together withaccommodation facilities for 70 personnel. The rig is capable of drilling andcompleting wells to a depth of 1000 metres, which is sufficient for MaxPetroleum's shallow drilling programme, as the targets range from 300-900metres. The rig is "winterised" to allow year round operations in WesternKazakhstan. The initial contract period covers the drilling and completion of up to 10(shallow) wells in Block E, which may be extended at the exclusive option of MaxPetroleum. It is expected that the rig will commence operations early Q3 2006.Once the shallow drilling programme commences, Max Petroleum will provideshareholders with regular operational updates on progress. This shallow drilling programme will run in parallel with Max's deep drillingprogramme, which will commence in the Q4 2006 with the first well in the EastAlibek Block. The extended seismic programme in Blocks E and Astrakhanskiy iscurrently underway. Jim Jeffs, Chairman of Max Petroleum, commented: "I am pleased that we have signed a rig contract for an extensive shallowdrilling programme in this tight market environment. Initial analysis of data,still subject to confirmation from the Company's independent Competent Person,is extremely encouraging and we remain on track to achieve first production byearly Q3 2006. I would like to take this opportunity to praise the operational team for alltheir hard work with the preparation of the shallow well drilling programme." 22 May 2006 Enquiries: Max Petroleum PLC Steve Kappelle T: +44 (0)20 7355 9590 Chief Executive Officer Pelham Public Relations Charles Vivian T: +44 (0)20 7743 6672 E : [email protected] Alisdair Haythornthwaite T: +44 (0)20 7743 6676 E: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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