Operational and Business Update

RNS Number : 6075B

Roxi Petroleum Plc

22 February 2011

 



For immediate release                                                                                                         22 February 2011

Roxi Petroleum plc

Operational and Business Update

Roxi Petroleum ("Roxi" or "the Company"), the Central Asian oil and gas company with a focus on Kazakhstan, announces the following operations and business update:

·     Two year extension to Exploration Contract secures Galaz Pilot Production

Galaz and Company LLP

Galaz has received confirmation from the Ministry of Oil and Gas that it will receive a two year extension to the Subsoil User Contract for the NW Konys Contract Area. The addendum to the contract and work programme will be finalised with the Ministry Working Committee over the next sixty days.

This extension period will allow continued appraisal of NW Konys field during Pilot Production and the exploration of the North Konys structure in the Area Extension announced on 12 January 2011.

It is now estimated that Galaz will receive all permits and approvals to start pilot production in H2 2011. Following completion of the SSUC amendment, Galaz will apply for Pilot Production consent for the extension period. Upon receipt of all emissions and production permits, production will begin immediately from the available wells, which have individual facilities. Tendering for camp, pilot production facilities, and the first stage, development drilling campaign will commence after completion of the extension award.

David Wilkes CEO commented:

"We are pleased to receive this extension to the Galaz Contract, which sets the foundation for our production forecasts for NW Konys through 2013.  We are now approaching a significant step change in the profile of Roxi as we successfully look to move our assets from the exploration phase into production."

Qualified Person

Duncan McDougall, Technical Director of Roxi Petroleum, a Fellow in the Geological Society, London, and member of the Society of Petroleum Engineers, 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)

Louis Castro / Tim Graham                                                                                          [phone]

Buchanan Communications (Financial PR)

Tim Thompson / Ben Romney / Chris McMahon                                                [phone]

 

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