Max Petroleum Plc, an oil and gas exploration and production company focused on Kazakhstan, is pleased to announce that it has entered into a memorandum of understanding with Halliburton Kazakhstan LLP (Halliburton), a subsidiary of Halliburton Energy Services, whereby Halliburton will provide integrated project management services for the drilling and completion of the Company’s pre-salt NUR-1 well in its Blocks A&E Licence area.
The integrated project management services include managing the sidetrack and drilling operations down to the NUR-1 well’s target depth of approximately 7,250 metres, conducting a detailed geomechanical study of the well, preparing an updated drilling programme (including updated casing, bit, mud, cementing, and hydraulics programmes), selecting and mobilising a suitable drilling rig and blow-out preventer, arranging procurement and logistics services for drilling related equipment and supplies, assisting in the use of drilling technology including expandable liners, and providing well site monitoring and associated technical analysis during drilling operations.
Halliburton has already completed the geomechanical study and a conceptual well design, both of which have given the Company a high degree of confidence that the NUR-1 well can be drilled to its target depth. The Company and Halliburton are currently working together to source the necessary equipment and services to recommence drilling operations, as well as to put together a refined cost estimate to finish the well based on Halliburton’s updated well design. At this time, the Company expects finishing NUR-1 will cost approximately US$20 million.
The recommencement of drilling the NUR-1 well is conditional on additional financing and the availability and procurement of a suitable drilling rig and related equipment. The Company is actively seeking partners to farm-in to its deep rights in the Blocks A&E Licence to finance NUR-1 and proceed with the re-entry operations as soon as practicable in 2014.
