The UTS-1 exploration well could very well be under starters orders, with 16 metres of net oil pay already in the bag at 60/76 metres of the drill the potential here for a big increase in net oil play to well in excess of 80 metres seems to me to be very likely. The good news here for MAX holders is that this oil find isn’t the primary target! Certainly under-valued at the moment but not for long once Max confirm reaching TD then they will almost certainly confirm higher oil columns in the cretaceous.
Max are drilling “approximately 900 metres to evaluate its principal exploration target sands in the Jurassic and Triassic sections. The Company will test the shallow Cretaceous zone after evaluating the deeper horizons.”
If you look at how quickly they hit the oil (5 days) after the 15th October it would suggest that there is a huge potentially company transforming discovery about to be quantified. If they find more oil in their primary targets then you could be looking at over 200 metres of oil (columns) so goes the thought here.
Very good punt. With a target sp of 50p minimum on a Cretaceous 86mtr discovery over the coming months. Possibly rising to well in excess of 80/90p all depends on what they find in the Jurassic/Triassic zones.
Robert Holland, Executive Co-Chairman, commented:
“The initial results of Uytas are very encouraging and could prove to be significant given the apparent size of the oil column. While we need to finish drilling the well to evaluate it fully, we are excited to have a potential commercial discovery before reaching our principal objectives.”
- UPDATE 1-Max says Kazakhstan well finds oil (reuters.com)