Max Petroleum Interim Results

Max Petroleum, an oil and gas exploration and production company focused on Kazakhstan, today announces its interim results for the six months ended 30 September 2011.

A summary of the Group’s financial and operational highlights are as follows:

Financial Highlights

 Revenue of US$24.4 million during the six months ended 30 September 2011 compared to US$24.7 million during the six months ended 30 September 2010.
 Total sales volumes of 421,000 barrels of crude oil (“bbls”), up 11% from 378,000 bbls sold in the comparative period in 2010.
 Average realised price of US$57.93 per bbl, down 11% from US$65.21 per bbl during the six months ended 30 September 2010, due to reduced export volumes relative to domestic sales.
 Cash generated from operations of US$7.9 million, up 43% from US$5.6 million in the comparative period.
 Loss for the period of US$0.4 million, compared to a loss of US$13.3 million during the six months ended 30 September 2010.
 EBITDA for the current period of US$10.7 million, up 41% from US$7.6 million during the six months ended 30 September 2010.
 In June 2011, paid the remaining balance of US$13.8 million under a tax claim brought by the local authorities of the Republic of Kazakhstan. The Company expects to recover the majority of the economic value of the tax claim through subsequent depreciation deductions that will offset
future taxable income.

Operational Highlights

 Ryder Scott Company finalised and delivered an updated reserves report as of 30 September 2011, including the Zhana Makat, Borkyldakty, Asanketken, East Kyzylzhar I and Sagiz West fields, including:
o Proved and probable (“2P”) reserves of 13.3 mmbbls at 30 September 2011, a 70% increase from 7.8 mmbbls in 2P reserves at 31 March 2011, as calculated by Ryder Scott Company at 30 September 2011 and 31 March 2011, respectively.
o The Sagiz West Field also estimated by Ryder Scott to contain an additional 1.5 mmbbls of possible reserves and 61.3 mmbbls of contingent resources in place at 30 September 2011.
 Since 31 March 2011, drilled 12 post-salt wells, including four exploration wells generating two commercial discoveries at East Kyzylzhar I and Sagiz West, and eight successful appraisal and development wells across three fields.
 Spudded the Group‟s first deep, pre-salt well (NUR-1) on the Emba B prospect in Block E in November 2011, targeting unrisked mean resource potential of 467 mmbbls of oil equivalent with a 29% geological chance of success.
 As of 11 November 2011, the remaining post-salt exploration portfolio consists of six prospects with unrisked mean resource potential of 110 million barrels of oil, plus five post-salt leads that the Group is evaluating using 138 km of recently acquired 3D seismic data, the majority of which it
expects to mature into post-salt prospects to be drilled during 2012.
 Acquisition of a 27 km high fold 3D seismic survey over the Uytas Field in October 2011 that, along with ongoing analysis of core data obtained in the recent appraisal drilling programme, will allow the preparation of a long-term appraisal and development programme for the Field.
 Four rigs currently under contract, drilling exploration wells at Emba B and Asanketken, an appraisal well at Zhana Makat and mobilising to drill an appraisal well at East Kyzylzhar I.
 Production increased from approximately 2,100 barrels of oil per day (“bopd”) from the Zhana Makat Field as at 31 March 2011 to current production of approximately 3,600 bopd from three producing fields, generating in excess of US$5.0 million in revenue per month. The Company expects to have all six of its commercial discoveries on production by 31 December 2011.


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