BNG Operational Update

RNS Number : 7836S

Roxi Petroleum Plc

16 September 2010

 



For immediate release                                                                                                     16 September 2010

Roxi Petroleum plc

BNG Operational Update

Roxi Petroleum ("Roxi" or "the Company"), the Central Asian oil and gas company with a focus on Kazakhstan, announces the following drilling and testing results on South Yelemes field:

·     Well 805 flows 226 bopd from Middle Jurassic Sandstone.

·     Confirmation of mobile hydrocarbons on Lower Cretaceous dolomites.

·     Well 806 drilled to total depth of 2557m, with likely residual oil shows.

BNG (Roxi Interest 23.41%)

South Yelemes

Well  805 which was drilled in June 2010, began testing operations on 5 August 2010. The well has tested two hydrocarbon bearing zones between 1965m and 2230m. From the lower zone ,  a stabilised flow rate of 226 barrels of 29^o API oil per day was achieved on a 6mm choke from a 4m pay interval in the  Middle Jurassic sandstone reservoir.  Following successful flow-test and build-up, the interval was isolated and the completion string, re- set to test the overlying Lower Cretaceous Dolomites. A 9m pay interval was perforated across the dolomite section and oil was initially swabbed into the borehole. The well flowed 29^o API oil, intermittently to surface. Following acidizing, enhanced inflow of oil was recorded, however no stablised flow to surface was achieved. Preliminary evaluation of the test results indicates that the interval should be capable of producing 150 barrels of oil per day on pump.

The well will now be prepared for test production of the Middle Jurassic in preparation for BNG receiving Pilot Production consent for South Yelemes.

Well 806, spudded on the 31^st July 2010 to appraise the Middle Jurassic and Lower Cretaceous accumulations, has reached a total depth of 2557m. There are good oil shows over a 12m interval in the Middle Jurassic with a further 16m of possible pay in the over lying Lower Cretaceous. Preliminary log results indicate that these could be residual oil shows, and the well may not be capable of producing oil. The core and log data will be further evaluated to determine the potential for testing well 806. In the meantime, casing will be run and the SNGS ZJ-40 drilling rig will move to the well 135 pad on MJ-A (North Yelemes) prospect.

David Wilkes CEO commented:

"We are pleased with the confirmation of the Lower Cretaceous reservoir in well 805, which could add significant value to the project. The results of well 806 will have to be fully evaluated, following which, we will start to delineate the distribution of these reservoirs, and assign reserves, using the  high quality core, log and test data we acquired in these appraisal wells"

Qualified Person

Duncan McDougall, Technical Director of Roxi Petroleum and a Fellow in the Geological Society, London, has reviewed and approved the technical disclosure in this announcement. He holds a BSc in Geology and has 25 years international experience of exploration, appraisal, and development of oilfields in a variety of environments

Enquiries

Roxi Petroleum plc

David Wilkes CEO                                                                                                            [phone]

Matrix Corporate Capital LLP (NOMAD and broker)

Alastair Stratton / Anu Tayal                                                                                       [phone]

Buchanan Communications (Financial PR)

Tim Thompson / Ben Romney / Chris McMahon                                                [phone]

 

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