Max Petroleum (MXP) announced today the success of its Uytas confirmation well. While this drill is far from MXP’s largest, it represents extremely positive news and should help the share price which has been hit hard by the US debt crisis.

RNS:

Max Petroleum Plc, an oil and gas exploration and development company focused on Kazakhstan, is pleased to announce today that the UTS-2 confirmation well in the Uytas Field has reached a total depth of 820 metres, with electric logs indicating 12 metres of net oil pay in the Cretaceous section at depths ranging from 108 to 148 metres, consisting of three sandstone reservoirs of excellent quality with porosities ranging from 25% to 34%. The Company also identified an additional six metres of net oil pay in Jurassic reservoirs at depths of approximately 350 metres. Significant oil shows were recorded continuously from depths of 36 metres to 150 metres, which appear to confirm the oil column seen in the original UTS-1 discovery well. Consequently, the Company extensively cored the UTS-2 well over the interval from 39 metres to 160 metres to allow further study of reservoir properties within this vertical column, with results from the coring analysis expected by early fourth quarter 2011. The core analysis will also be used to evaluate the potential of additional lower-quality reservoirs present in the Cretaceous in this interval that have not been included here as net pay. Furthermore, Cretaceous reservoirs above 80 metres that were not evaluated on electric logs due to their shallow depth may be tested in this well or subsequent wells pending the final core analysis.

The Company is currently running production casing in the well, which will be completed and tested using a workover rig after obtaining the requisite governmental approvals. Test results will be announced as soon as practicable. The Company plans to drill two additional appraisal wells in the field during August 2011 and acquire a high-fold 3D seismic survey over the Uytas structure in October 2011, in order to facilitate preparation of a long-term appraisal and development programme for the field.

Robert B. Holland, Executive Co-Chairman, commented:

“We are pleased with the successful confirmation of our Uytas discovery, with results in line or better than the original discovery well. We are conducting core analysis and additional technical studies to better define the potential of this discovery, and identify production techniques to maximise future oil recovery from the field given Uytas’ unique shallow setting.”