Update on operations at BNG, the sale of Galaz

RNS Number : 0758J

Roxi Petroleum Plc

01 April 2015

 

Roxi Petroleum PLC

("Roxi" or the "Company")

Update on operations at BNG, the sale of Galaz

Roxi, the Central Asian oil and gas company with a focus on Kazakhstan, is pleased to further update the market with news of progress at its flagship BNG asset and progress on the completion of the sale of Galaz.

BNG Operational Update

The BNG Contract Area is located in the west of Kazakhstan 40 kilometers southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometers of which 1,376 square kilometers has 3D seismic coverage acquired in 2009 and 2010. 

Roxi has a 58.41 per cent interest in the BNG Contract Area.

Deep Wells

Deep Well A5

Since 9 March 2015, the date of the last operational update, the Company has been working to clear the blockage at a depth of 3517 meters.

Despite our continued efforts the well remains blocked. To date we have sought to clear the blockage as cheaply as possible but these cost-effective techniques have yet to prove effective.  We are therefore seeking to use additional specialist equipment and may need to bring in additional assistance to complete the operation.  Further specialist equipment is due on site this week and we will continue to update shareholders as the work progresses.

Deep Well 801

Deep Well 801, which was spudded on 15 December 2014, is to be drilled to a total depth of 4,950 meters targeting the Lower Carboniferous. The well is being drilled by Sinopec, the Chinese multinational, for a fixed cost of $11 million USD.

The well is located approximately 8 kilometers from Deep Well A5 and will be targeting the Lower Carboniferous in same structure as Deep Well A5.

As previously reported casing has been set to a depth of 3,560 meters. 

Roxi is pleased to announce that drilling at Deep Well 801 has now passed through the salt layer without incident, and reached a depth of 4,095 meters into the Lower Permian.

We continue to expect the well will reach Total Depth by mid April 2015.

Shallow Wells

Our shallow wells at BNG are located in the South Yelemes portion of the BNG Contract Area extending over an area of 800 sq. km, a few kilometers from the deep prospects.

Well 143

Well 143 is being prepared to test new intervals.

Sale of Galaz

Background

On 10 February 2015, Roxi announced the conditional sale of the entity owning the beneficial interest in the Galaz Contract Area for a total consideration of up to $100 million.

The sale is due to complete by 30 April 2015.

Roxi is pleased to announce that it has received the all important consent of the Kazakh authorities to complete the sale.  Once the purchaser has been cleared by the Kazakh monopolies authority the completion of the sale of Galaz is set to  proceed as planned and on time.

Comment:

Clive Carver, Chairman said

"While the pace of the clean up at Deep Well A5 is clearly slower than expected progress at Deep Well 801 is encouraging and has to date been without many of the technical issue encountered during the drilling of Deep Well A5.

Once the proceeds of the disposal of our interests in the Galaz Contract Area become available we plan to speed up the pace of development at BNG."

Enquiries:

Roxi Petroleum PLC                                                  Clive Carver, Chairman

[phone]

WH Ireland Ltd                                                         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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