Astrakhanskiy
The Astrakhanskiy Block consists of 1,273 km2 located onshore in the Atyrau Oblast in Western Kazakhstan. The Block is adjacent to the giant gas-condensate Astrakhan Field in Russia and its extension into Kazakhstan, Imashevskoye. Max Petroleum acquired a 100% interest in the Astrakhanskiy licence in January 2006.
The principal terms of the Astrakhanskiy licence are as follows:
- Tax/royalty exploration contract, executed in January 2006.
- Exploration period of four years plus two two-year extensions. First extension until January 2012 was executed on 27 April 2009.
- Corporate income tax rate of 20%.
- MET rates ranging from 5% to 20%, dependent upon annual production levels and market price of crude oil and gas condensate. An MET rate of 10% applies for exported natural gas.
- ERT rates ranging from 0% to 32% based on crude and gas condensate export levels and market price of Brent/Urals. The ERT does not apply to exported natural gas.
- Work commitment to begin drilling initial exploration well by 31 December 2009. A request to move this well into 2010 is being made to the relevant authorities.
The Group has completed its seismic acquisition programme over the Astrakhanskiy Block, consisting of 380 km2 of 3D and 445 km2 of 2D seismic in the western section of the Astrakhanskiy licence area. The Group’s strategy is to pursue a farmout or sale of this licence, which is believed to be of interest to major and large independent oil companies seeking high risk/high reward opportunities.
