I featured Max Petroleum several times on the Blog. And I must say that I, like the company are amazed at how low this share-price has gone. There’s been nothing but good news coming out of the company over the last several months or so. The only fly in the ointment is the tax issue involving the Court of Cassation, a panel of the Almaty City Court in the Republic of Kazakhstan which rejected the Company’s appeal of an ongoing tax claim brought against the Company. The appeal was lost due to a procedural technicality. The Company is therefore again appealing the case to the Supreme Court for consideration. Even if they lose the claim at the Supreme court the company are looking good to go.
Max Petroleum are targeting six post salt exploration wells with an unrisked 130 million barrel resource and a risked resource of 47 million barrels. They also have five wells currently undergoing various stages of development and appraisl, Zhana Makat (Development) Uytas (Appraisal) Borkyldakty (Development) Asanketken Jurassic (Appraisal) Narmundanak South (Appraisal). These assets are classified as Low risk cash flow.
The pre salt exploration wells are targeting a mouth-watering figure of just over 1 BILLION barrels of oil from two high impact wells.The Group’s strategy is to significantly grow its reserve base through the exploration and development of a diversified portfolio of shallow, post-salt and deeper, pre-salt prospects high graded using approximately 5,000 km2 of exploratory 3D data acquired over the Group’s extensive onshore acreage position in one of the most prolific petroleum bearing basins in the world. I’ve been researching Max for quite some time and Kazakstan is becoming increasingly attractive to the Chinese and Russians. Ties between these countries are becoming increasingly apparent. China want the Gas and Oil and it is known that various trade delegations and senior figures in the Chinese government have been crawling all over Kazakstan this year. wherever the Chinese go the money goes with them. Max petroleum have an unrisked mean resource of just under 1.2 Billion barrels of oil with a risked resource base of 355 million barrels of oil. They look significantly under true value at the moment. This company could literally be transformed OVERNIGHT via several different scenarios; High impact drilling success, Chinese involvement, Successful tax appeal,Russian involvement. “The Company recently awarded a tender to Saipem, a subsidiary of Eni, for a rig to drill its deep pre-salt exploration programme and expects to execute a drilling contract shortly. Max plans to commence drilling the first pre-salt well, NUR-1, in Block E during August 2011, targeting unrisked mean resource potential of 467 million barrels of oil equivalent distributed over a probable range (P90 to P10) of 170 million to 817 million mmboe with a 29% geological chance of success”.
There’s going to be a plethora of expected good news coming through the market grapevine over the next several months. They look set to rise yet again. They should be in excess of 30p in my opinion and have already hit approx’ 35p this year. If they prove up any of the high-impact drills then this company will rocket into many multipules of where they now languish. Eyes on now as they seem to of bottomed out. They will go only one way and that is up.