MXP.L Regulatory News (MXP)

13 Jul 2007 07:00

Max Petroleum PLC13 July 2007 MAX PETROLEUM PLC (AIM: MXP) UPDATED RESOURCE ESTIMATE FOR KUZBAK PROSPECT 13 July 2007 Max Petroleum Plc ("Max Petroleum" or "the Group"), an oil and gas explorationand development company focused on Kazakhstan, today announces an update of itsestimate of resources associated with the Kuzbak prospect in the Group's Block Elicense area as reported on by Ryder Scott Company, L.P. ("Ryder Scott"), whohave been appointed as the Group's Competent Person. The key highlights from the Competent Person's report are as follows: •Risked mean prospective resources of 250 million barrels of oil equivalent ("boe"); and •Unrisked mean prospective resources of approximately 1.1 billion boe, with unrisked P10 resources of 2.3 billion boe and P90 resources of 147 million boe. The technical data utilized in the Ryder Scott review of the Kuzbak prospectincluded fourteen additional 2D seismic profiles shot across the southernportion of Block E during the first quarter of 2007. Five of the new lines werepre-stacked depth migrated to improve the sub-salt imaging of the structure. Thereport was prepared by Ryder Scott in accordance with the standards of theSociety of Petroleum Engineers. Jim Jeffs, Executive Chairman, commented: "The Ryder Scott Kuzbak update was the result of extensive analysis of new andreprocessed seismic data, which further validates the prospectivity of ouracreage. We are delighted to be working with Ryder Scott developing our manyprospects across our extensive asset base in the Pre-Caspian Basin." Enquiries: Max Petroleum PLC Michael B. Young T: +44 (0)20 7355 9590 Chief Financial Officer Peter Moss T: +44 (0)7834 572 837 Investor Relations Manager Merlin Tom Randell T: +44 (0)20 7653 6620 David Simonson WH Ireland Ltd David Porter T: +44 (0)20 7220 1666 James Joyce Henrik Busk, Petroleum Engineering and Geology Manager of Max Petroleum, aPetroleum Geologist, is the qualified person who reviewed and approved thetechnical information contained in this announcement and Steve Phillips,Geologist, Geophysicist and Vice President of Ryder Scott, is the qualifiedperson who reviewed and approved the technical information relating to theupdate from Ryder Scott. Ryder Scott is an internationally recognized oil and gas consultancy firm whichconducts independent petroleum reserves evaluations and economic analysis foroil and gas companies worldwide. Founded in 1937, Ryder Scott performs about 800consulting studies annually. The firm has 77 petroleum engineers andgeoscientists in Houston, Calgary and Denver office locations. The firm hascertified reserves for hundreds of field projects in the Former Soviet Union,including the $6.75 billion acquisition of Tyumen Oil Co. and Sidanco four yearsago - the largest direct investment in Russia in the post-Soviet era at thattime. Ryder Scott has issued numerous Competent Person's Reports for upstreamcompanies reporting to regulatory agencies in the European Union and elsewhere. Glossary Proved Reserves Proved reserves are those quantities of petroleum, which by analysis ofgeological and engineering data, can be estimated with reasonable certainty tobe commercially recoverable, from a given date forward, from known reservoirsand under current economic conditions, operating methods, and governmentregulations. If deterministic methods are used, the term reasonable certaintyis intended to express a high degree of confidence that the quantities will berecovered. If probabilistic methods are used, there should be at least a 90percent probability that the quantities actually recovered will equal or exceedthe estimate. Probable Reserves Probable reserves are those unproved reserves which analysis of geological andengineering data suggest are more likely than not to be recoverable. In thiscontext, when probabilistic methods are used, there should be at least a 50percent probability that the quantities actually recovered will equal or exceedthe sum of estimated proved plus probable reserves. Risk - Risk is defined as the probability of loss or failure. In the oil andgas industry, risk is commonly applied to the estimation of prospective(undiscovered) resources to account for the possibility that the outcome ofdrilling a well may not be successful. Risk is defined through the termgeological chance of success which considers the geological factors that willresult in the formation of a hydrocarbon reservoir with sufficient quality toallow for sustained flow rates of oil or gas. Prospective Resources Prospective Resources are those quantities of petroleum which are estimated, ona given date, to be potentially recoverable from undiscovered accumulations. Unrisked Resources - Unrisked prospective resource volumes are commonlycategorized as Unrisked P90, P50, P10 or Mean Resources and are estimated beforemultiplying by the geological chance of success which assumes that the drillingof an exploration well is successful. Risked Resources - Risked prospective resource volumes are commonly categorizedas Risked Mean Resources and are calculated by multiplying the unrisked meanresources by the geological chance of success to account for the risk ofdrilling an unsuccessful exploration well. P90 - The quantity for which there is a 90% probability that the quantitiesactually recovered will equal or exceed the estimate. P10 - The quantity for which there is a 10% probability that the quantitiesactually recovered will equal or exceed the estimate. Mean - The mean is also known as the expectation or expected value. It is theaverage over the entire probability range, weighted with the probability ofoccurrence. This information is provided by RNS The company news service from the London Stock Exchange