Not ideal but in the grande scheme of things, these small shallow prospects are well worth the risk as the cost to drill them is under $2mln.
MXP have already notched up a success in 2013 but further news on commercial status is required before the market will add in value.
News on an extension to the A&E block (if granted) will really add some life back into the stock as that’s where the potential lies. The kaza gov have been ruthless in the past and tax claims together with red tape delays on exports serve as a reminder that this region is far from sympathetic to the little guy.
Personally – I think there’s a good chance that an extension will be granted. But the question is – at what price?
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Max Petroleum Plc, 28 January 2013
Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, today announces that it has completed drilling the TOLW-1 exploration well on the Tolegen West prospect on Block E. The well reached a total depth of 1,540 metres without encountering producible hydrocarbons. The well will now be plugged and abandoned. The Zhanros rig will next move to the Zhana Makat field to drill the ZMA-A20 well, the first of five development wells to be drilled in Zhana Makat during 2013.
The Company is currently seeking regulatory approval for a two-year appraisal extension over the entire Blocks A&E Licence (the “Licence”) until March 2015, which would allow the Company to drill its two remaining post-salt prospects subsequent to March 2013. The Company will provide a more comprehensive update on the status of its Licence in the near future.
Great update from Bowleven today, my target is 100p over the next few weeks. A bit of procrastination in getting the news out but this seems well worth waiting for.