Max Petroleum PLC said the Kazakh government has granted regulatory approval to convert Zhana Makat field in the North Caspian basin of western Kazakhstan to full field development status effective immediately.
The action allows the company to develop and produce the field for as long as a further 25 years and grants it the right to sell 80% of crude oil produced from Zhana Makat on the export market under terms of the Blocks A&E exploration and production contract.
The company, which expects to begin selling crude on the export market in April, said current export sales are generating after-tax net proceeds $22-25/bbl higher than comparable domestic sales.
Zhana Makat is producing 2,100 b/d of oil from Jurassic and Lower Cretaceous reservoirs. Max Petroleum operates five other discoveries.