Kazakhstan-focused oil and gas explorer Max Petroleum (LON:MXP) announced this morning that it has found hydrocarbons at its SAGW-1 exploration well in its Sagiz West prospect in the country.
The SAGW-1 well has reached a depth of 1,406 metres electric logs indicate 27 metres of net pay, with 21 metres oil and six metres of gas pay, over a 114-metre interval in the Triassic formation at measured depths of between 1,177 and 1,291 metres. The firm said that reservoir quality is “very good” with porosities ranging from 18 per cent to 25 per cent.
Max had been targeting an estimated, un-risked mean resource of 26 million barrels of oil at Sagiz West. Based on current geophysical mapping, together with electric logs and pressure data recorded in the well, the firm now estimates oil in place in the Sagiz West field at 66 million barrels with expected recovery factors ranging between 20 per cent and 30 per cent.
Max is now running production casing in the well, which is expected to be completed and placed on test production upon receipt of government approvals. Two further appraisal wells are also planned for 2012.
“This is an excellent result for the company and our shareholders,” said Michael Young, president and chief financial officer at Max. “Sagiz West is a large, conventional post-salt discovery that validates our focus on the Triassic rim play type that makes up the majority of our forward shallow prospect inventory. We have now drilled eight successful wells since March 2011, with three discoveries, bringing our overall success rate with our shallow exploration programme to 50 per cent since January 2010.”
Meanwhile, Max added that it has begun drilling the ASK-2 exploration well in Block E. This is targeting Jurassic and Triassic reservoirs with estimated un-risked mean resource potential of 50 million barrels of oil.