Max Petroleum kicks off new well at Sagiz West
Max Petroleum (MXP) has begun testing a second Triassic reservoir in the SAGW-1 well in the Sagiz West Field.
The well, at depths between 1,243 and 1,255 metres, flowed 43 degree API gravity oil at a stable rate of 430 barrels of oil per day (bopd) over a 17-hour period.
Additionally, the company has begun testing a second Jurassic reservoir in the ASK-1 well in the Asanketken Field. The field, at depths between 1,271 and 1,277 metres, flowed 36 degree API gravity oil at a stable rate of 1,005 bopd over a 24-hour period.
"Both wells are connected to temporary production facilities and will be placed on long-term test production for up to 90 days," said the oil and gas explorer and producer.
The company holds a 100% interest in the Blocks A&E Licence area covering over 12,455 square kilometres in the Pre-Caspian Basin in Western Kazakhstan. The Pre-Caspian Basin has produced some of the world's largest oil and gas discoveries, including Tengiz, Kashagan, Karachaganak and Astrakhan fields, which range in size from seven to 20 billion barrels of oil equivalent in recoverable reserves.
Late last month, Max confirmed it had started drilling the SAGW-3 appraisal well on the Sagiz West Field in Block E. This followed reports in December that the first appraisal well for the Sagiz West discovery, SAGW-2, did not encounter producible hydrocarbons.
"Overall, [this is] good news for Max – much better flow rates, and good quality light oil," stated broker FoxDavies, which had a 'buy' rating on the stock with a 50p price target.
Merchant Securities analyst Brendan Long looks at what the future holds for the Kazakhstan oil industry and whether it’s too late for juniors to join the fray in: Kazakhstan: where next for the oil industry?
