MXP.L Share News (MXP)

Max Petroleum, an AIM listed oil and gas firm which focuses on Kazakhstan, has been granted an extension to its trial production project in the Zhana Makat field.This is a positive sign because it indicates the firm may gain so called "full field development" (FFD) status. With FFD Max Petroleum would be entitled to sell 80 percent of the oil it produces in Zhana Makat for international export, where profits are much better than simply selling into Kazakhstan's domestic market.The Kazakhstan government is looking hard at granting FFD approval but until then Max Petroleum will have to make do with selling the barrels it produces within its host country, at levels that are $15 - $17 lower than export sales.Currently production is at around the 2,200 barrels of oil per day (bopd) mark, generating revenue of approximately $3.5m per month and the company appears determined to get this level up to 3,000 bopd by the end of 2011.Max Petroleum's share price was up two percent in early trading in London.BS