Operational and directorate update

RNS Number : 7541W

Roxi Petroleum Plc

02 January 2014

 



For immediate release                                                                                                            2 January 2014

Roxi Petroleum plc ("Roxi" or "the Company")

Operational and directorate update

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to update the market as follows:

Operational

BNG Contract Area

Roxi has a 58.41% interest in the BNG Contract Area, which is located in the west of Kazakhstan 40 kilometres southeast of Tengiz on the edge of the Mangistau Oblast. The Contract Area covers 1,561 square kilometres of which 1,376 square kilometres has 3D seismic coverage acquired in 2009 and 2010. Roxi resumed full control of BNG Ltd LLP in the second quarter of 2011.

The Contract Area has both shallow and deep prospects, which Roxi is funded to explore and develop following the US$40 million equity funding commitment in January 2013.

Shallow wells

Roxi is pleased to announce that Well 807, which is targeting Cretaceous Limestone and Jurassic Sandstone, has reached it revised total depth of 2,301 meters and an oil casing string has been set and cemented.

Based on early indications it is expected that Well 807 should produce at the rate of 225 bopd, (131 bopd net to Roxi), which is a similar level to the other successful shallow wells. Based on testing to date Roxi expects Wells  54, 143, 805, 806 and 807 would, in aggregate, be capable of production at the rate of some 1,200 bopd (701 bopd net to Roxi).

During the next three months three intervals of Valanginian age at Well 806 will be tested using a work-over rig and the data from these test used to calculate reserves for the Valanginian horizon. During the same period a separate work-over rig will be used at Well 143 and the test data similarly used to calculate reserves.

Deep Wells

As previously announced the deep drilling at BNG provides the greatest opportunity for transformational discoveries.

BNG Ltd LLP, in which Roxi has a 58.41% interest, plans to drill 5 deep wells before the expiry of the existing licence in June 2015, with the locations of the first two deep wells already identified. It is anticipated that three of the five wells will be drilled on the Ayrshaghal structure and two on Yelemes structures.

The first deep well, designated Well A5, is to be drilled to an estimated depth of 4,700 meters and was spudded in July 2013, targeting the Permian formation at 4,120 meters and the Carboniferous formation at 4,390 meters. From seismic analysis the salt layer, which is now expected to be up to 250 meters thick, will be encountered at around 3,800 meters.

Since the last operational update, Roxi has experienced a number of unexpected delays principally in respect to permitting. In particular it has taken longer than expected to determine and fulfill the precise requirements of the various regulatory authorities over such issues as the operating capabilities of blow-out preventers.  Drilling has recently resumed and Roxi now expects to reach total depth by the end of the first quarter of 2014.

Directorate change

Hyunsik Jang, a Korean national and geologist who has been an Executive Director and the Chief Operating Officer since 2010, became a non-executive director of the Company with effect from 1 January 2014.

This change reflects the shift in the Company's activities from early stage exploration to near term commercial production.  The board of Roxi wishes to thank Mr Jang for the important contribution he has made to date and is pleased that his experience and knowledge of our key projects will remain available to the board.

Comments:

Clive Carver, Chairman said

"Roxi remains well placed to continue to build on the successes of 2013.  Most importantly we have the funding in place to continue our multi-well development programme. We believe with the early indications from Well 807 that the shallow wells at BNG have already demonstrated themselves to be commercial and we are poised to discover in Q1 the value of the BNG's deeper prospects."

Enquiries

Roxi Petroleum PLC                                                                                   

Clive Carver, Chairman                                                                 [phone]

WH Ireland plc                  

James Joyce / James Bavister                                                     [phone]

Qualified Person

Mr. Nurlybek Ospanov, Roxi's senior geologist who is a member of the Society of Petroleum Engineers ("SPE"), has reviewed and approved the technical disclosures in this announcement.

 

END

 

 

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