Max Petroleum (LON:MXP) announced today that the ZMA-ET1 appraisal well in its Zhana Makat field in Kazakhstan has flowed at the best test rate of all wells that have so far been drilled on the field.
Initial testing at the well showed an equivalent flow rate of 1,200 barrels of oil per day (bopd) over a five hour flow period, the Kazakhstan operating oil firm said today.
The well will be connected to temporary production facilities later this week and brought onto production. Max expects the ZMA-ET1 well to produce at a stabilised rate between 500 and 1,000 bopd.
"This is the best test rate we have seen in any well we have drilled to date and further confirmation of the potential of the Triassic reservoirs on Blocks A and E," said president and chief financial officer of Max Petroleum Michael Young.
“We will continue to increase production this month as we bring on the ZMA-ET2 and BOR-3 wells, followed by the ASK-1 Jurassic well in August.”
The ZMA-ET2 well is the next one to be tested. The well is expected to begin production in the next few weeks.
Other prospects set to be drilled during this quarter include Sagiz West, Zhalgyz South, and Asanketken.
Max Petroleum will have to sell all of its oil production to Kazakhstan’s domestic market until it secures the full field development (FFD) approval for the Zhana Makat field.
Max expects to receive the approval, which will give it the right to export 80 percent of its crude oil production, in the final quarter of the year.
Revenues from selling crude on the domestic market are currently US$15-17 per barrel lower than comparable export sales.
Shares in Max Petroleum rose 0.75 pence (5.5 percent) to 14.25 pence this morning. The company currently has a market cap of £124.6 million.