LONDON (Alliance News) - Roxi Petroleum PLC Thursday said it has received positive feedback from shallow drill testing but has experienced delays in the development of deep wells at its BNG Contract Area.
The Kazakhstan-focused oil and gas company said that plans to develop deep wells at the site have experienced unexpected permitting delays, due to the precise requirements of various regulatory authorities relating to issues such as operating capabilities and blow-out preventers.
The company began drilling the first of five deep wells, named Well A5, at the site in July 2013 but was slowed by the permitting delays. The company has now resumed development of the site, expecting to reach a total depth of 4,700 meters by the end of the first quarter 2014.
However, Roxi said it has received positive feedback from early testing at its Well 807 site in the BNG Contract Area.
Roxi said the well has been set and cemented after reaching a revised total depth of 2,301 meters and early testing indicates a production rate of 225 barrels of oil pay day, with 131 barrels going to Roxi per day.
The company said of its key shallow sites, based on testing, Wells 54, 143, 805, 806 and 807 would, in aggregate, be capable of production at the rate of some 1,200 barrels of oil per day , with 701 barrels per day to Roxi.
The company has a 58.4% interest in the 1,561 square kilometre BNG Contract Area in the west of Kazakhstan after taking full control of BNG Ltd LLP in 2011.
Roxi is funded to develop both shallow and deep prospects at the site following a USD40 million equity funding commitment in January 2013.
Roxi petroleum shares were down 21% to 4.25 pence, putting them among the top three AIM fallers Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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