Kazakhstan-focused oil and gas firm Max Petroleum is to cut back on costs as it looks to move into production.
The London-based independent, which saw revenues fall 6% last year, said it was significantly scaling back its drilling plans for 2014.
The move comes ahead of an anticipated reserves update for the Sagiz West prospect.
The firm said it was no longer planning drilling levels at the current cost structure, after a 35-well programme last year costing almost $1m per well.
“We expect significant improvement in our cash flow as expected production increases from existing discoveries and cost reductions are realised, although some material transitional implementation costs may be expected,” said co-chairmen Robert Holland and James Jeffs.
The company began scaling back operations last year, after axing more than 20 jobs and changing production to cut water bills.
Partner discussions over its plans to farm-out drilling in a deep well in the country have been dropped, although work is due to resume on the Nur-1 site.
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