Max Petroleum (MXP) has spudded it’s ASK-1 well. ASK-1 is the largest of Max’s shallow drills planned for 2011 and is targeting 50 million barrels of oil. Max has estimated the chance of success for the drill to be 48%, and a result is expected in about 5 weeks.

A positive result from the drill could be worth as much as 13p a share (50mil x $10 per barrel x 25% recovery factor / amount of shares in issue), on top of its current price of around 19p, highlighting the huge potential of Max at its current share price.

ASK-1 is one of eight shallow drills Max has scheduled for 2011, with a total 168 million barrels of oil being targeted. Max has also scheduled drilling on its much larger deep prospect Emba B for Q3 2011, targeting 593 million barrels of oil at a 29% chance of success. Max will then target a further 467 million barrels of oil at Emba A in Q1 of 2012, and the success of either of those could be real company makers, with a share price above 100p a distinct possibility.

Max recently acquired significant funding for these drills through a share placing, raising $85 million. The cost of the two deep drills alone is estimated to be $63 million, so the raising of this funding was vital and ensures that Max Petroleum shareholders can look forward to the possibility of a very profitable 2011.

RNS:

“Max Petroleum Plc, an oil and gas exploration and development company focused on Kazakhstan, is pleased to announce that it has commenced drilling the ASK-1 exploration well on the Asanketken prospect in Block E, the ninth of 15 post-salt exploration prospects scheduled to be drilled by the Company on Blocks A&E. The total depth of the well will be approximately 3,300 metres, targeting potential Triassic reservoirs.”