Max Petroleum announced a production update of its activities in the Blocks A&E License area in the Republic of Kazakhstan. The Company began testing the KZIE-1 discovery well in the East Kyzylzhar I Field, flowing 42 degree API oil at a stable rate of 1,484 barrels of oil per day ("bopd") on a 24/64" choke with flowing tubing head pressure of 20 bars during a 24 hour test period from six meters of perforations in a Jurassic reservoir at true vertical depths ranging from 1,110 to 1,118 meters. The well has been connected to temporary production facilities and is on long-term test production.
With all producing wells online, the Company reached a record level of production of 5,625 bopd on November 19, 2011, and plans to bring up to seven additional wells onto production before December 31, 2011. Future daily production rates will remain variable due to several high rate wells being subject to periodic shut-in during long-term testing. The Company produced an average of 3,235 bopd since September 30, 2011 and an average of 3,639 bopd since October 31, 2011.
Michael B. Young, President and CFO, commented, "This is a historic milestone for the Company. We have more than doubled the Company's daily production since June 30th, with two wells producing in excess of 1,000 bopd each. We currently have four of our six commercial discoveries on production and plan to have all six producing by December 31. This steep ramp up in production will have a significant impact on our cash flow generated from operations, as we actively pursue our ongoing exploration and appraisal drilling program in Blocks A&E."
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