LONDON (ShareCast) - Shares in Max Petroleum (Other OTC: MXPTF - news) got a boost on Monday after the oil and gas exploration and production company, which is focused on Kazakhstan, announced positive initial results from the the ESKN-1 exploration well in the Eskene North prospect.
Electric logs of the well, which reached a depth of 1,507 metres, indicated 20 metres of net pay over an 90 metre gross interval.
Michael Young, President and Chief Financial Officer of Max Petroleum said: "The Eskene North discovery looks to have substantial oil in place though the porosity is of lower quality than we have seen in some of our other post-salt Triassic discoveries. We will announce the results of our production test as soon as possible and look forward to confirming our eighth commercial discovery."
Testing on the well is expected to begin in early 2013 to determine commercialness after obtaining the relevant government approvals.
The Zhanros rig will now move to drill the Tolegen West prospect in Western Block E, targeting eight million barrels of mean resources.
The group also announced that it has completed the initial closing of its $90m senior credit facility with SB Sberbank, enabling it to draw down up to $60m to repay $47m to Macquarie Bank and partially fund its ongoing shallow drilling programme.
The share price rose 2.67% to 3.85p.