MXP.L Regulatory News (MXP)

Max Petroleum Plc

(the "Company")

Operations Update

Updated Volumetrics for Sagiz West Field

Production Test Results in Sagiz West, Eskene North, and Baichonas West

15 August 2013

Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce an operations update for the Sagiz West, Eskene North and Baichonas West fields.

Sagiz West

The combined results of the SAGW-4 well and the latest 3D seismic survey results confirm productive reservoirs in a central fault block with estimated original oil in place ("OOIP") in a range between 35 and 48 million barrels of oil ("mmbo"). The outer flanks of the Sagiz West structure beyond this central fault block are still considered prospective, but are not included in this revised OOIP figure and will need to be tested by future drilling. Recoveries from the central fault block area are expected to be in the range of 20-30% with an expected recovery from this part of the Sagiz West Field of approximately seven to 14 mmbo. Final results of the 3D evaluation and further drilling may increase this estimate in the future. The Company expects to drill up to ten additional wells in Sagiz West through Spring 2014.

The SAGW-4 well in the Sagiz West Field is currently testing a Triassic reservoir from depths ranging between 1,251 and 1,257 metres, producing at a stable rate of approximately 70 barrels of oil per day ("bopd") with a 16% water cut. Although porosities in this well are reasonably good, the permeability is not as high as seen in other reservoirs in the field making this zone a good candidate for hydraulic fracturing, a stimulation technique that is used routinely in these types of reservoirs around the world. Other more permeable reservoirs found to date in the field that have produced at higher rates will not require stimulation. The Company anticipates that use of hydraulic fracturing may generate up to a fivefold increase in production at a cost of approximately US$300,000 per well. The production data from this well will be used to help evaluate and design a stimulation programme for this reservoir across the Sagiz West Field.

The Company has also tested the lower Triassic section in the well at depths below 1,264 metres, which produced minor amounts of water with a show of oil and the zone was abandoned. Fluid samples taken from the well at depths of 1,225 and 1,240 metres have now been analysed and are reported to contain "dry gas" as opposed to "gas condensate" as was reported in the Company's press release on 13 June 2013.

Eskene North

The ESKN-1 well in the Eskene North Field has begun testing in a Triassic reservoir from depths between 1,326 and 1,357 metres, where it has produced at rates up to 25 bopd with no water. This low production rate was expected given the low permeability in the reservoir. Data from the production test is being used to design a hydraulic fracture stimulation programme for ESKN-1, which is planned to be carried out in October 2013.

The Eskene North structure covers a large area and the volume of oil in place suggested by the oil column seen in ESKN-1 is currently estimated by the Company to be 21 mmbo. The Company is planning to drill a second well in Eskene North in September 2013, subject to regulatory approvals.

Baichonas West

Initial testing has now been completed at BCHW-2. Results show gas in the Middle Jurassic reservoir which produced natural gas at a rate of 71,100 m³ per day over the interval from vertical depths of 1,106 to 1,116 metres. The well also had significant oil and gas shows in the lower Jurassic and Triassic over a 170 metre interval that were not present in the first well in the field, BCHW-1. Several zones in this section were tested between vertical depths of 1,187 and 1,393 metres, all of which were found to be of low permeability and produced oil and water at non-commercial rates. A third well is planned in September 2013 which will test possible improvement in the quality of Triassic reservoirs as well as delineate the extent of the productive Jurassic accumulation. The Triassic reservoirs will be studied to determine suitability for hydraulic fracture stimulation.

Richard Hook, Chief Operating Officer of Max Petroleum Plc, is the qualified person that has reviewed and approved the technical information contained in this announcement. Mr. Hook is a member of the Houston Geological Society and holds both Masters and Bachelors of Science degrees in geology.