Max Petroleum has announced that its ASK-J2 well in Asanketken field has begun testing and is flowing at a stable rate of 503 barrels of oil per day with no water
The Kazakhstan-focused oil and gas exploration company added that the well would be on test production status for 90 days.
Recently, a drill stuck between a rock and a salty hard place in its NUR-1 exploration well in western Kazakhstan prompted shares in Max Petroleum to fall by more than half. Max Petroleum, which is already facing delays at the well, said it did not expect to reach the well's targeted depth of 7,250 metres before August 2012.
After the drilling delay, the company revealed that it may have to "significantly curtail" its exploration activities amid rising costs.
The company had expected the well to reach its total depth in April 2012, but pushed the date to June after the drilling tools got stuck.
Max Petroleum said it expects the NUR-1 well to cost about US$43 million assuming it can resume drilling soon with an additional $10 million in forward costs. The well was originally expected to cost $33 million.
The company is currently supported by a US$58 million loan facility, of which US$54.2 million has now been drawn.
