Just one day after reporting a significant discovery on the Uytas exploration well – mxp is already getting final preparations and equipment ready for the next two drills due to start in under 3 weeks.
The ALTW-1 exploration well on the West Altykol prospect is expected to spud along with the the ASK-1 well on the Asanketken prospect before 1 February 2011. WA is a Triassic prospect with a 4-way closure and Asanketken is a salt flank Triassic prospect. Both share very similar CoS to the successful Uytas well. ASK-1 is targeting a p50 50mmboe estimate and WA a smaller 13mmboe p50. However, it is worth noting that targets for Uytas were p50 34mmboe. The eventual results showed potential for p50 100mmboe. 3 x the forecasted target. It clearly demonstrates the potential upside in the next two drills.
With two high potential wells due to spud – you would expect the sp to be higher in the coming weeks as anticipation over the next two well’s rises and speculators take positions. At today’s 21.75p it looks like the two next wells are in for free on a risk basis. That’s good value in my opinion.
Several shallow wells are expected to come into production in the first quarter boosting the current average of 2000bopd. Max have not confirmed bopd projections for 2011 and may do so in the coming weeks. Investors should look at the Interim report released in Dec 2010 for a more detailed account of activity in Q1.