production contracts kazakhstan, page-5

mljet,

Max had one licence terminated due to their decision not to proceed without a partner because of their financial constraints as described below but they continue to drill successfully in other areas of Kazakhstan.

"Max Petroleum has receive a dispatch from Kazakhstan Ministry of Oil and Gas (MOG) informing the company of the government decision to terminate Max Petroleum subsoil use license for the Astrakhanskiy Block in Western Kazakhstan. The agreement was said to be terminated due to Max Petroleum failure to comply with certain work obligations, stipulated under the license.

It is thought that MOG decision reflects a greater change in the treatment of subsoil use licenses. The decision does not affect the company's key asset, the Blocks A&E license area. The news of the termination comes shortly after the company decision to put on hold drilling of an exploration well, without a partner."