Ann: Weekly Drilling Update , page-14

Max Petroleum have spudded BOR-1 just 'down the road' (geologically) from SVA as per below. Targeting a similar sized play as SVA. Interestingly they have allowed 30days for the 1820m drill. Should reach TD about the same time. DYOR

Max Petroleum Plc announced today that it has commenced drilling the BOR-1
exploration well on the Borkyldakty prospect in Block E, the first of twelve
post-salt exploration prospects scheduled to be drilled by the Company on Blocks
A&E.

The ZMA-A12 development well recently drilled in the Zhana Makat Field has been
completed in the lowest of three Jurassic sandstone reservoirs encountered in
the wellbore. The well was completed in late December 2009 from perforations in
the JII-B reservoir over the interval 873.5 - 877.5m in measured depth, and has
been on an extended production test since 1 January 2010. The well is currently
being produced on pump at a controlled rate of approximately 60 bopd. Testing of
the upper zones in this well, which include the primary target, will be
considered after the lower zone is fully evaluated.

Comment

The news on Zhana Makat ZMA-A12 is in-line with expectations and follow-on the
successful drilling and testing of the recent ZMA-AN2 well.

BOR-1 is the first exploration well of the current campaign. The Borkyldakty
prospect is a post-salt structure with mean resources estimates of 18MMbbl and a
chance of success of 57%. It is a straightforward 4-way dip closure at Jurassic
level and was selected as a first target on the strength of the likelihood of
success.

Post-salt discoveries have been made in the area but some dry wells have also
been drilled on similar structures. Max Petroleum has carried out an extensive
review of all wells drilled in the area and has come to the conclusion that
establishing the migration and drainage patterns through the salt was the
critical success factor for post-salt prospects.

We believe the Company has done its homework and, as mentioned in our previous
research report (FDC Nov 2009), we have been impressed with the quality and
relevance of that work. Therefore we are optimistic about their chance of
success. However for the reason given in paragraph above a failure at
Borkyldakty would not significantly impact on the chances of success of
subsequent drilling.

The well is expected to take about 30 days to reach TD but there are a number of
possible objective zones on the way down; however newsflow should be tight.