Max Petroleum reported that the UTS-4 confirmation well in the Uytas Field has reached a depth of 849 metres, with electric logs indicating 36 metres of potential net oil pay in the Cretaceous section at depths ranging from 30 to 158 metres, consisting of six sandstone reservoirs of excellent quality with porosities ranging from 25% to 35%. This includes 16 metres of potential net pay in the shallow Cretaceous section between depths of 30 and 57 metres, which were not evaluated in the UTS-2 well because the equivalent interval was not logged. Significant oil shows were recorded continuously from depths of 20 metres to 167 metres, which appear to confirm the oil column seen in the original UTS-1 discovery well. The Company cored the UTS-4 well over the interval from 24 metres to 47 metres to allow further study of reservoir properties within this vertical column, with results from the core analysis expected during the fourth quarter of 2011.

Additionally, significant shows of oil and gas not observed in prior wells were recorded in the Kungurian salt near total depth of the well. The UTS-4 well was not designed to evaluate this interval, which will be investigated further in a future well. The Jurassic reservoirs found in earlier wells were not well developed at this location, however, and no pay was logged in the Jurassic section of the well.

The Company is running production casing in the well, which will be completed and tested along with the other appraisal wells in the field in the next 60 to 90 days using a workover rig after obtaining the requisite governmental approvals. Test results will be announced as soon as practicable. The Company plans to acquire a high-fold 3D seismic survey over the Uytas structure in October 2011, in order to facilitate preparation of a long-term appraisal and development programme for the field.

Robert B. Holland, executive co-chairman, commented: "We are encouraged by the results of the appraisal drilling programme at Uytas, which supports the large vertical oil column observed in the discovery well and additional reserve potential in the Cretaceous above 100 metres. The oil and gas show below the salt was a pleasant surprise we plan to evaluate further through future wells and the development 3D seismic data we will acquire in October. We are looking forward to the results of the core analysis in the fourth quarter and putting together a development plan for the Field."

Tags: Max Petroleum Plc