Maxim Resources Inc. is a leading publicly traded junior resource company focused on exploration, development, and production of oil and gas. The company was founded in 2002 and is headquartered in Vancouver, British Columbia, Canada. Maxim trades on the Toronto Venture Exchange (MXM), the Frankfurt Stock Exchange (M5H) and the NASDAQ (MXMSF).
The company’s primary assets are in Trinidad and the Gulf of Mexico. In the last two years, exploration initiatives have resulted in these two properties turning producers with room for future development.
LARGEST OIL DISCOVERY FOUND ON LAND TRINIDAD IN OVER 30 YEARS
Oil - The South Erin Block, Trinidad: Maxim Resource’s main focus is the 1350-acre South Erin Block of Trinidad, which is a largely unexplored block situated in the prospective Southern Basin of Trinidad that forms part of the prolific Eastern Venezuelan Basin. The block is reportedly estimated to contain reserves (NI 51-101 compliant) of 725 thousand stock tank barrels. (MSTB) The Operator has logged off 12 million barrels on the Joint Venture Block (2.5 million barrels recoverable at 18%) Maxim currently maintains a 69-per-cent working interest before payout and a 41-per-cent revenue interest (after payout) in the South Erin block of Trinidad.
The block is comprised of approximately 1,350 acres in southwest Trinidad, which is about 40 miles southwest of the Port of Spain and approximately 18 miles southwest of San Fernando. This largely unexplored farm out block is west of and adjacent to the Erin/Palo Seco oilfield, from which BP and Texaco Oil produced over 200 million barrels of oil.
• The largest on-shore oil find in Trinidad in 30 years (Well ER-98) was announced in November 2006.
• A comprehensive Environmental impact report was completed, and approvals were granted by the Trinidad Environment Management authority (EMA) to advance by issuing a 47-well drilling permit, approval to increase tank farm infrastructure and permission to tie production into a nearby pipeline that connect to the state run oil refinery.
• The operator has logged off 12 million barrels in the discovery block by targeting the same sands that are the current production horizon in the eastern field adjacent that has produced 200 million barrels of oil for BP and Texaco.
• Current recovery rates are set at 18%, yielding 2.5 million barrels of recovery as per the independent technical report completed. However, Maxim’s consulting Geologist expects to see a water drive in the field (as see in the 200 MIL adjacent field) taking recovery from 18% to 40% plus. This will be closely monitored as more production comes on line and further logging occurs.
• The next 10 well programs (of the 47-well permits) are considered development and should flow between 150 to 250 barrels of oil over a 15-year life expectancy.
• The wells in this program will be drilled to a planned 3,500 feet and are anticipated to intersect the lower forest A and B sands, as observed in ER-98. Drilling will take approximately 12 days per well. Currently, the discovery well (ER-98) has been free flowing production from one zone at 80 – 100 barrels of oil per day since July 2007.
• The development drilling program will be followed by drilling on favorable targets on the exploration block faults.
Gas - Gulf of Mexico: Maxim Resources has 10.075% interest in the High Island Block oil and gas leases and 115 B-1 well (a sidetrack well to the original B-1 well). The B-1 well produced 8.5 billion cubic feet of gas from October 2003 to December 2004. Production from the High Island 115 B-1 well in the Gulf of Mexico commenced in December 2007 and is reportedly flowing at a sustained rate of 9.3 million cubic feet of gas per day. However, a flow rate of 15 million cubic feet of gas per day is targeted as the well cleans up. The company and its partners are also proceeding with the acquisition of seismic data and accessing the economic feasibility of developing additional oil and gas reserves from within the High Island Block.
• The initial well flow tests indicate that an absolute open flow of 52.3 million cubic feet of gas per day is estimated. In addition, the well flow tests indicate that the well will flow at an estimated rate of 15 million cubic feet of gas per day on an 11/64th-inch choke.
• Production from the High Island 115 B-1 well in the Gulf of Mexico commenced in December 2007 and is reportedly flowing at a sustained rate of 9.3 million cubic feet of gas per day. However, a flow rate of 15 million cubic feet of gas per day is targeted as the well cleans up.
• Maxim has a 10% carried interest in the Gulf of Mexico High Island leases and High Island 115 sidetrack well. The well is flowing and is generating approximately $250,000 cash flow per month to Maxim.
• The company and its partners are also proceeding with the acquisition of seismic data and accessing the economic feasibility of developing additional oil and gas reserves from within the High Island Block.
The long-term objective of the company’s management team is to aggressively develop the current producing properties and to continue to seek low risk properties with high potential. The policy of the company is to lower shareholder exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that it can operate as the sole owner operator.
Investors and potential investors are encouraged to review Maxim’s current projects. For further information, please contact the company by telephone or email, or sign up for our electronic newsletter and email company update programs.