Max Petroleum, an oil and gas exploration and production company focused on Kazakhstan, said Friday the Kazakh Government has granted regulatory approval to convert the Zhana Makat Field to full field development ("FFD") status effective immediately.
FFD approval will allow Max Petroleum to develop and produce the Zhana Makat Field for up to a further 25 years, as well as grant the Company a right to sell 80 percent of crude oil production from Zhana Makat on the export market under the terms of its Blocks A&E exploration and production contract.
Current export oil sales are generating after-tax net proceeds that are approximately $22-$25 per barrel higher than comparable domestic sales.
Zhana Makat is currently producing approximately 2,100 barrels of oil per day.
"Zhana Makat was Max Petroleum's first discovery in Kazakhstan and is now the first of our six discoveries to move from trial production into full field development. We expect to begin selling Zhana Makat crude on the export market in April, which will provide a healthy boost to our monthly operating cash flow given current world oil prices," commented Max Petroleum's President and CFO Michael Young.
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