MAX PETROLEUM PLC

MAX PETROLEUM PLC

Previous company name
MAX PETROLEUM LIMITED
Name change date
9/13/2005
Company Overview
Max Petroleum PLC is an oil and gas exploration and development company, with head office in London, United Kingdom. Max Petroleum was formed in April 2005 and listed on London’s AIM market in October 2005. The Group was founded with the expressed target of growing into a leading international independent oil and gas exploration, development and production company, with an initial focus on Kazakhstan.
The UK-based company acquired rights over three contract areas in Kazakhstan, consisting of four oil and gas blocks in the Pre-Caspian Basin, including the A & E Blocks, East Alibek, and Astrakhanskiy (the “Properties”). Blocks A & E are located in the Atyrau region in West Kazakhstan, which contains a good spread of shallow, intermediate and deep drilling opportunities. East Alibek is located in the Aktyubinsk Oblast, in West Kazakhstan. East Alibek was estimated to contain between 10 and 100 million barrels of recoverable oil resources. Astrakhanskiy, acquired in December 2005, is located in the Atyrau Oblast with three large anticline structures namely: Imashevsky South, Imashevsky Southwest and Imashevsky East.
The Group has acquired a large amount of geophysical and well data on the Properties, which are serviced by infrastructure, including electrical power lines, a network of all-weather roads, and an experienced oil industry work force. The Properties are also close to the regional rail and pipeline transportation systems.
The Group’s strategy is to initially explore for and develop low risk, low cost oil reserves in its shallower supra-salt prospects using modern western exploration techniques, including 2D and 3D seismic and the re-interpretation of existing well logs.
Business Summary
The principal activity of the Group is the exploration, development and production of oil and gas assets within the Republic of Kazakhstan.
Description and history
The principal activity of the Company is the exploration, development and production of oil and gas assets within the Republic of Kazakhstan. The Company owns rights over three contract areas consisting of four oil and gas blocks in the Pre-Caspian Basin, including Blocks A & E, East Alibek, and Astrakhanskiy. The Company, through its subsidiaries, owns an 80% interest in Blocks A & E and East Alibek, and 100% of the rights to the Astrakhanskiy contract area.

The Company’s business strategy is to generate short-term production and cash flow from the exploration and development of shallow and intermediate prospects, while pursuing a comprehensive geological and geophysical exploration programme to identify highly prospective, deeper targets.

HISTORY:

The Company was incorporated in the United Kingdom on 8 April 2005. Its shares are listed on the AIM on 27 October 2005.

During the fiscal period ended 31 March 2006, the Company acquired rights over three contract areas consisting of four oil and gas blocks in the Pre-Caspian Basin, including the A & E Blocks,East Alibek,and Astrakhanskiy (the Properties).

The Company commenced a shallow drilling programme in August 2006 and plans to drill up to 30 wells through December 2007.The first four wells in the shallow programme have been successfully drilled and completed in the Zhana Makat Structure on Block E and are now producing in excess of 600 barrels of oil per day which is expected to increase as the Company’s latest well is brought onto full production. Drilling operations on the fifth well are ongoing, after which the rig will begin drilling on Zhana Makat E. Current production is being constrained by the size of the pumps being utilized in the field. The Company is sourcing larger pumps which anticipates an increase in the productive capacity of subsequent wells drilled on the structure.

Founded with the expressed target of growing into a leading international independent oil and gas exploration, development and production company, with an initial focus on Kazakhstan

Business Line
Oil and gas exploration and development
Subsidiary
ALGA CASPIYGAS LLP
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
10/26/2005
US SIC Code
1311
Company Address
2nd Floor
81, Piccadilly
City province or state postal code
W1J 8HY, LONDON
Phone: +44 20 7355 9590
Fax: +44 20 7355 9591
Country address: UNITED KINGDOM
Website url: www.maxpetroleum.com