LONDON (Alliance News) - Roxi Petroleum PLC Wednesday said it has discovered oil at the BNG contract area in the west of Kazakhstan as it continues to test the area to identify the quantity and quality of the oil.
Despite the news, Roxi shares were down 24% to 13.54 pence per share Wednesday morning.
Roxi's Deep Well A5 is to undergo flow testing, with stimulation work producing oil, showing the resevior is oil bearing. However, due to pressures encountered, the oil only flowed for a short period of time and was not sufficient to measure the quantity of recoverable oil, it said in a statement.
The oil that was recovered is of good quality, and the company will have a full analysis of the oil after a 30 day testing period, it added. The company said it will install new equipment if it is required and conduct a 30-day flow test of the well to assess the quantity of oil in the resevior.
"The preliminary view at our deep well A5 is that the reservoir is oil bearing and the quality of the oil is good. The next step remains to assess how much recoverable oil we have," said Chairman Clive Carver.
At its shallow wells in the BNG area, it has discovered oil at four of its wells, which were all drilled between 2,500 and 3,000 metres and are considered to have commercial production potential, with further tests to continue, said Roxi.
Four intervals that were drilled at its NK-31 well in the Galaz contract area, also in Kazakhstan, were tested and failed to produce any oil, with further intervals to be drilled with a further update expected soon, it added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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