MXP.L Share News (MXP)

Max Petroleum, the oil and gas exploration and development company focused on Kazakhstan, was wanted Friday after it provided an operational update.The firm has indicated that the secondary objective of its Asanketken prospect in Block E is expected to be commercially viable, even if the primary objective seems to face important obstacles. The company said it has also procured two additional drilling rigs, one of which will be used to drill the NARS-1 exploration well on the Narmundanak South prospect in Block E, after which it will move on to drill three confirmation wells at its Uytas field. The other rig will be used to drill the first pre-salt well, NUR-1, in Block E during August 2011, targeting unrisked mean resource potential of 467m barrels of oil equivalent."Adding additional rigs, including the deep rig for our pre-salt exploration programme, is a key step in our plans to significantly ramp up our exploration, appraisal and development activity in 2011," said Robert Holland, Executive Co-Chairman of Max Petroleum. "We also expect a substantial increase in production and revenues in the near-term as we bring on additional appraisal and development wells in Zhana Makat, Borkyldakty and Uytas," Holland added.Additionally, the Central Committee for Exploration and Development has recommended the trial production project for the Borkyldakty Field to the Committee of Geology for final approval. Initial market reaction to the trading update was positive on Friday morning, with shares hitting initial technical resistance levels in the proximity of the 18p mark, according to Digital Look technical analysts. Said level is reinforced as a barrier by the presence of the 50 day moving average. Indications from its relative strength index (RSI) are roughly neutral.Friday's announcement may compensate, at least partially, for the most recent and negative news flow during the last two months. ab