AIM-listed oil and gas exploration and production company Max Petroleum has secured a two-year appraisal extension on its A and E licence in Kazakhstan.

In a regulatory update issued by the company on Monday, Max Petroleum reported that the Ministry of Oil and Gas of the Republic of Kazakhstan had advised it that it would provide "various regulatory approvals" for the licence in Western Kazakhstan.

These include extending the exploration period of the licence by two years until March 2015 for further appraisal of the block. It also includes granting the Asanketken Field trial production status and granting the Borkyldakty Field full field development status.

Max Petroleum said that the regulatory approvals were expected to become effective once the amendments to the licence had been executed specifying the mandatory work programme commitments associated with each approval.

The appraisal extension will allow the company to continue appraising and developing its existing post-salt discoveries, drill its two remaining post-salt prospects, and finish drilling the pre-salt NUR-1 well on the EMBA B prospect, with an option to drill the KURZHEM-1 well on the EMBA A prospect in the event the NUR-1 well is successful.

Robert Holland and James Jeffs, Co-Executive Chairmen of Max Petroleum, said: "We appreciate the continued support of the Kazakh Government, granting us additional time to finish testing the EMBA B Prospect while we transition to the appraisal and development of our eight shallow discoveries in Blocks A&E."

"Combined with our recent balance sheet restructuring, we are in a strong position to build significant shareholder value through increased production, revenue, and reserves from our post-salt assets, while also retaining the significant upside potential of our deep, pre-salt portfolio."

Max Petroleum's share price was up 8.74% to 4.73p at 12:15 on Monday.

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